After weeks of coalition wrangling, Benjamin Netanyahu started his fourth term as Israeli premier today, but he faces an even tougher task to mend fences with the United States and Europe.
Soon after its narrow approval by parliament late yesterday, the new rightwing government was warned by Washington that it must forge a deal with the Palestinians for its own good.
Chairing his first cabinet meeting overnight, Netanyahu said his administration would "continue to work for a diplomatic solution (to the Palestinian conflict) while upholding the vital interests and security of the citizens of Israel".
Like the coalition agreement published this week, it made no mention of the "two-state solution" -- the concept of a sovereign Palestinian state alongside Israel which is favoured by the US, the United Nations, the EU and the Arab League.
US President Barack Obama pointedly mentioned it in remarks shortly after parliament ratified Netanyahu's government by 61 votes to 59.
"I continue to believe a two-state solution is absolutely vital for not only peace between Israelis and Palestinians, but for the long-term security of Israel as a democratic and Jewish state," said Obama.
"I know that a government has been formed that contains some folks who don't necessarily believe in that premise, but that continues to be my premise."
That government largely consists of nationalist patrons of West Bank Jewish settlement, the ultra-Orthodox, and opponents of Palestinian statehood.
The Palestinians have already slammed the coalition, with chief negotiator Saeb Erakat calling it a "government of war".
"Netanyahu is vehemently leading the charge to bury the two-state solution," he said.
The international community has been watching since Israel's March 17 general election to see what sort of coalition emerges from the weeks of political horse-trading that followed.
European diplomats say that over the summer France is expected to renew its efforts to get a UN Security Council resolution on ending the conflict.
Israel insists the only path to a solution is through direct, bilateral talks with the Palestinians, and has bristled at UN involvement to set a timeframe for a deal.
