Netanyahu unveils unity government

JERUSALEM -- Now backed by a parliamentary supermajority, Benjamin Netanyahu has tremendous room to maneuver on Israel's most pressing issues: peace with the Palestinians, possible war with Iran, and the growing rift at home between religious and secular Jews.

The stunning partnership with the opposition Kadima Party, announced overnight just as the nation was expecting him to call early elections, means the premier, if he so desires, can compromise with the Palestinians without being brought down by hard-line nationalists who had controlled his fate.

"A broad national unity government is good for security, good for the economy, good for the people of Israel," Netanyahu declared at a news conference with Kadima leader Shaul Mofaz, his new deputy prime minister.

With his coalition divided over domestic issues, Netanyahu had declared in recent days that he would hold a parliamentary election in September, more than a year ahead of schedule. But as parliament convened late Monday to move toward elections, he and Mofaz were secretly wrapping up their power-sharing deal. Israelis were stunned to wake up yesterday to a new political reality.

Netanyahu now heads a 94-member coalition, one of the broadest alliances in the 120-seat parliament in Israeli history -- putting him in a strong position to push forward with new initiatives.

The outcome is also a life raft for Mofaz. Netanyahu had been widely expected to win the election by securing a majority of seats for his Likud and the religious and nationalist parties that are its natural, but pesky, allies. The opposition center-left bloc was behind in polls and appeared headed toward splintering into several medium-sized parties to boot.

For Israelis who felt alienated by the Netanyahu government -- and they were legion among the country's various elites -- there is now the prospect of a more moderate leadership no longer dependent on the extreme right.

The revamped coalition is expected to sit through the end of the parliamentary term in October 2013.