Netanyahu hard-line bloc handed a setback

JERUSALEM -- Prime Minister Benjamin Netanyahu's hard-line bloc fared worse than expected in parliamentary elections Tuesday and may force the Israeli leader to invite surprisingly strong moderate rivals into his government and soften his line toward the Palestinians.

More than 99 percent of the votes had been counted by this morning, and results showed that while Netanyahu appeared positioned to serve a third term as prime minister, the hawkish and dovish blocs were split about evenly.

Netanyahu's most likely partner was Yesh Atid, or There is a Future, a party headed by newcomer Yair Lapid that showed surprising strength. Lapid, a former TV anchorman, has said he would join only a government committed to sweeping economic changes and a resumption of peace talks with Palestinians.

Netanyahu's Likud-Yisrael Beitenu alliance was set to capture about 31 of the 120 seats, significantly fewer than the 42 it held in the outgoing parliament and below the forecasts of recent polls. With his traditional allies of nationalist and religious parties, Netanyahu could put together a shaky majority of 61 seats, results showed.

Addressing his supporters early today, Netanyahu vowed to form as broad a coalition as possible. He said the next government would be built on principles that include reforming the contentious system of granting draft exemptions to ultra-Orthodox Jewish men and the pursuit of a "genuine peace" with the Palestinians. He did not elaborate, but the message seemed aimed at Lapid.

Shortly after the results were announced, Netanyahu called Lapid and offered to work together. "We have the opportunity to do great things together," Netanyahu was quoted as saying by Likud officials.

Lapid's surprise showing could make him a key cabinet minister, should he decide to join Netanyahu's government.