ISRAEL'S incoming government extends its hand to the Palestinians and is ready for a historic compromise, Prime Minister Benjamin Netanyahu has said while presenting his new centre-right coalition to parliament.
He says Israel will maintain its existing peace treaties with Egypt and Jordan, and is ready for "a real peace" with the Palestinians that will end the conflict "once and for all".
Addressing the Knesset which convened ahead of casting its vote of confidence in the new government on Monday, Netanyahu warned, however, that to reach a peace treaty, both sides would have to compromise.
Israel is facing its biggest challenges since the state was founded nearly 65 years ago, said the premier, who is about to begin his third term.
"Our existence here cannot be taken for granted," he said, and promised that his government's first priority would "be the defence of the country and its citizens".
The premier finalised his coalition on Friday, a day before the deadline.
The new government comprises four parties - Netanyahu's nationalist Likud-Beiteinu alliance, the pro-settler Jewish Home, the centrist Yesh Atid, which advocates socio-economic reforms, and another centrist party of former foreign minister Tzipi Livni.
It can count on a majority of 68 mandates in the 120-seat Knesset.
Members of the small, ultra-Orthodox United Torah Judaism faction left the chamber during Netanyahu's speech, to protest at their exclusion from the coalition.
The session kicked off with the election of the parliamentary speaker, with the post going to Likud-Beiteinu lawmaker and former minister Yuli Edelstein.
The cabinet ministers were set to be sworn in later on Monday.
The new government assumes power two days before US President Barack Obama arrives in the region for a visit to Israel and the Palestinian Territories.
The new cabinet will initially have 22 members, including Netanyahu. The post of foreign minister is being held by the prime minister pending the outcome of a trial involving the former head of diplomacy, Avigdor Lieberman.
The Likud-Beiteinu alliance won the January election, handing Netanyahu his second successive term in office, but with a smaller number of seats.
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