Changes

===Political Conditions===

===Political Conditions===

From the founding of Israel in 1948 until the election of May 1977, Israel was ruled by successive coalition governments led by the Labor alignment or its constituent parties. From 1967-70, the coalition government included all of Israel's parties except the communist party. After the 1977 election, the Likud bloc, then composed of Herut, the Liberals, and the smaller La'am Party, came to power forming a coalition with the National Religious Party, Agudat Israel, and others. As head of Likud, Menachem Begin became Prime Minister. The Likud retained power in the succeeding election in June 1981, and Begin remained Prime Minister. In the summer of 1983, Begin resigned and was succeeded by his Foreign Minister, Yitzhak Shamir.  

From the founding of the modern state of Israel in 1948 until the election of May 1977, Israel was ruled by successive coalition governments led by the Labor alignment or its constituent parties. From 1967-70, the coalition government included all of Israel's parties except the communist party. After the 1977 election, the Likud bloc, then composed of Herut, the Liberals, and the smaller La'am Party, came to power forming a coalition with the National Religious Party, Agudat Israel, and others. As head of Likud, Menachem Begin became Prime Minister. The Likud retained power in the succeeding election in June 1981, and Begin remained Prime Minister. In the summer of 1983, Begin resigned and was succeeded by his Foreign Minister, Yitzhak Shamir.  

After Prime Minister Shamir lost a Knesset vote of confidence early in 1984, new elections in July provided no clear winner, with both Labor and Likud considerably short of a Knesset majority and unable to form even narrow coalitions. After several weeks of difficult negotiations, they agreed on a government of national unity, including the rotation of the office of Prime Minister and the combined office of Vice Prime Minister and Foreign Minister midway through the government's 50-month term.  

After Prime Minister Shamir lost a Knesset vote of confidence early in 1984, new elections in July provided no clear winner, with both Labor and Likud considerably short of a Knesset majority and unable to form even narrow coalitions. After several weeks of difficult negotiations, they agreed on a government of national unity, including the rotation of the office of Prime Minister and the combined office of Vice Prime Minister and Foreign Minister midway through the government's 50-month term.  

In a special election on February 6, 2001, after a campaign stressing security and the maintenance of Israeli sovereignty over Jerusalem, Likud leader Ariel Sharon defeated Barak by over 20 percentage points. As he had promised in his campaign, Sharon formed a broad unity government that included the Labor and Likud parties, the far-right parties, some smaller secular parties, and several religious parties. The unity government collapsed in late 2002, and new elections were held in January 2003. Sharon again won, and formed a new government consisting of his own Likud party, the right-wing National Religious Party and National Union party, and centrist Shinui.  

In a special election on February 6, 2001, after a campaign stressing security and the maintenance of Israeli sovereignty over Jerusalem, Likud leader Ariel Sharon defeated Barak by over 20 percentage points. As he had promised in his campaign, Sharon formed a broad unity government that included the Labor and Likud parties, the far-right parties, some smaller secular parties, and several religious parties. The unity government collapsed in late 2002, and new elections were held in January 2003. Sharon again won, and formed a new government consisting of his own Likud party, the right-wing National Religious Party and National Union party, and centrist Shinui.  

The summer of 2004 saw renewed instability in the government, as disagreement over the Gaza disengagement plan resulted in Sharon's firing two ministers of the National Union Party and accepting the resignation of a third from the National Religious Party in order to secure cabinet approval of the plan (it was endorsed on June 6, 2004). Continuing divisions within the Likud on next steps then prompted Ariel Sharon to leave the party in November 2005 to form the Kadima ("Forward") party and call new elections for March 2006. However, Sharon was unexpectedly incapacitated in January 2006 due to a severe stroke and leadership of Kadima shifted to Acting Prime Minister Ehud Olmert, who on March 28 led the party to 29 seats in the Knesset. Labor came in second with 19 seats, and Shas and Likud tied with 12. After intensive coalition negotiations, a new, Kadima-led government, with Labor as "senior partner", was sworn in on May 4, 2006.  

The summer of 2004 saw renewed instability in the government, as disagreement over the Gaza disengagement plan resulted in Sharon's firing two ministers of the National Union Party and accepting the resignation of a third from the National Religious Party in order to secure cabinet approval of the plan (it was endorsed on June 6, 2004). Continuing divisions within the Likud on next steps then prompted Ariel Sharon to leave the party in November 2005 to form the Kadima ("Forward") party and call new elections for March 2006. However, Sharon was unexpectedly incapacitated in January 2006 due to a severe stroke and leadership of Kadima shifted to Acting Prime Minister Ehud Olmert, who on March 28 led the party to 29 seats in the Knesset. Labor came in second with 19 seats, and Shas and Likud tied with 12. After intensive coalition negotiations, a new, Kadima-led government, with Labor as "senior partner", was sworn in on May 4, 2006.

===Foreign Relations===

===Foreign Relations===