Netanyahu forms a coalition government with the religious right

Israel's prime minister, Benjamin Netanyahu, has formed an eleventh-hour coalition government with smaller right-leaning religious parties. The announcement came almost two months after his Likud Party won the election, and an hour before the midnight deadline to form a new government expired.

Despite marathon negotiations, Netanyahu only managed to secure the slimmest possible majority of one seat in the 120-member parliament. Even before Wednesday night's deal he had been branded "a general without soldiers", by the Israeli Hebrew-language newspaper Maariv.

The country's system of proportional representation means that no party has ever won an outright majority, so small parties are required to form coalition governments. "I'm sure no-one is surprised that these negotiations were lengthy," Netanyahu told journalists.

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Although poised to become the longest serving prime minister in Israel's history, the Prime Minister has emerged "weakened to lead a government that Israeli experts said was unlikely to last long or do much," says the New York Times.

He was forced to enter into an agreement with the right-wing Bayit Yehudi (Jewish Home) party, sacrificing the justice ministry for their eight seats. However, party leader Naftali Bennett's controversial stance on key issues is expected to worsen Israel's relationship with Washington and Europe, warns the BBC.

The Israeli-Palestinian conflict is "insoluble" and most Israelis "couldn't care less about it anymore", Bennett told The Guardian earlier this year. He also rejects the notion of an independent Palestinian state and has called for the annexation of parts of the occupied territory.

Netanyahu has indicated that he will still attempt to lure other parties into his coalition in order to strengthen it. "I said that 61 is a good number, and that 61-plus is even better," he said. "But it begins with 61, and we will get started. There is a great deal of work ahead of us."

Israel election: Netanyahu wins but can he govern?

18 March

Benjamin Netanyahu's right-wing Likud Party won a decisive victory in Israel's election, but complex negotiations lie ahead before he will be able to form a government.

The latest count gives Likud 30 seats in the 120-seat parliament, the Knesset, with the centre-left challenger the Zionist Union on 24 seats.

Exit polls had predicted a much closer result, with some suggesting that the outcome may have been a tie.

Israel's system of proportional representation means that no party has ever won an outright majority, so small parties are required to form coalition governments. Yesterday's victory gives Netanyahu a "strong chance" of forming a right-wing coalition government, the BBC says, but difficult negotiations still lie ahead.

Yitzhak Herzog, the head of the centre-left Zionist Union, said "everything is still open" and has made clear that he will still speak to party leaders about forming a government of his own.

All eyes are now on a new centrist party led by former communications minister Moshe Kahlon which "could be the kingmaker" in coalition talks, The Guardian says. Kahlon has not ruled out a partnership with either Likud or the Zionist Union.

The exit polls suggested that left-leaning factions had taken 43 seats, while right-wing and religious parties were on 54. Neither figure is enough to form a parliamentary majority and the full results of the election are not expected until later today.

Netanyahu described the result as a "great victory". If he can take a fourth term in office he could become the longest serving prime minister in Israel's history.

Addressing supporters last night, Netanyahu said: "Dear friends, against all odds we have achieved a great victory for Likud, for the national camp which is headed by Likud, for our people. I am proud of the Israeli people, who recognised what's important … and stood up for real security, economy and social welfare, which we are committed to.

"Now we must form a strong and stable government that will care for the security and welfare of all of Israel's citizens," he added.

Israel election 'too close to call' as polls open

17 March

The polls have opened across Israel for an election that many observers say is one of the tightest races in recent history.

Benjamin Netanyahu, the hawkish leader of the Likud party, is seeking a fourth term as prime minister, but faces strong opposition from Yitzhak Herzog, co-leader of the centre-left Zionist Union.

Herzog promises to repair international relationships damaged by Netanyahu's uncompromising attitude to both domestic and international affairs.

The Zionist Union has pledged that it also hopes to repair relations with Palestinians – a stark contrast to Netanyahu's commitment on Monday to strengthen the construction of settlements in occupied east Jerusalem and not to allow the creation of a Palestinian state should he be re-elected.

Netanyahu’s comments were seen as a final attempt to persuade conservative voters to vote for Likud rather than the rival far-right Jewish Home party.

"I think that anyone who moves to establish a Palestinian state and evacuate territory gives territory away to radical Islamist attacks against Israel," he said. "The left has buried its head in the sand time after time and ignores this, but we are realistic and understand."

The Zionist Union responded sharply to the move. "Netanyahu has now admitted he was tricking Israeli and world public opinion when he spoke of a Palestinian state. He didn’t mean it at the time," Zionist Union MP Nachman Shai said.

Living standards and the national economy have also emerged as key issues in the election, the BBC reports.

Netanyahu went into the election as the "clear favourite", says The Guardian, but he has struggled to garner support due to a "weak campaign and in the face of an unexpectedly strong challenge from Herzog who has campaigned largely on the social and economic issues Israelis have made clear matter most to them".

A huge turnout is expected today. Election analysts predict that up to 80 per cent of the eligible population will vote. Likud and the Zionist Union parties are "neck and neck" in the polls, Al Jazeera reports, but the election remains "too close to call."

Polls opened at 7am (5am GMT) and will close at 10pm this evening.