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Israel election: Benjamin Netanyahu faces poll setback Israel election: Benjamin Netanyahu faces poll setback
(35 minutes later)
Exit polls from Israel's election suggest Prime Minister Benjamin Netanyahu's right-wing alliance has lost ground to centre-left parties.Exit polls from Israel's election suggest Prime Minister Benjamin Netanyahu's right-wing alliance has lost ground to centre-left parties.
As voting ended, the polls predicted a narrow majority for Mr Netanyahu's Likud-Beitenu and potential nationalist and religious allies.As voting ended, the polls predicted a narrow majority for Mr Netanyahu's Likud-Beitenu and potential nationalist and religious allies.
The high turnout is thought to have benefited Labour and centrists,The high turnout is thought to have benefited Labour and centrists,
The centre-left Yesh Atid (There is a Future) party is believed to have come second, followed by Labour. Yesh Atid (There is a Future), a centrist party, is believed to have come second, followed by Labour.
Mr Netanyahu is expected to seek an alliance with a new nationalist party, Habayit Hayehudi (Jewish Home).Mr Netanyahu is expected to seek an alliance with a new nationalist party, Habayit Hayehudi (Jewish Home).
Supporters at Habayit Hayehudi cheered, threw confetti and waved Israeli flags when the first exit polls appeared on the huge screens at party HQ in Tel Aviv. Likud-Beitenu supporters cheered as exit polls came out. "We're happy we're still the biggest party," one woman told me. "Thirty-one seats is better than the 27 we thought," added a man, Daniel, referring to the projected results.
"There's no way we'll not be in the coalition," they shouted. They'd hoped for more seats but as newcomers on the political scene here, they see this result as a significant victory. But if the forecasts are right, this election result will surely disappoint Mr Netanyahu. He called early elections - and teamed with the ultra-nationalist Yisrael Beitenu - hoping to build a stronger coalition and it appears to have had the opposite effect.
Habayit Hayehudi's "rockstar" party leader, ultra-nationalist, religious, high-tech whizzkid Naftali Bennett grabbed the headlines before the election with his far-right credentials but Mr Bennett insisted then he could work with anyone in a coalition, for the good of Israel. Two rising stars of the election come from different parts of the political spectrum. The far-right Jewish Home party of Naftali Bennett could have a dozen seats while centre-left TV celebrity Yair Lapid could have as many as 19. By contrast, Labour, one of Israel's well-established parties appears to have failed to live up to earlier expectations of a resurgence.
The question is if parties to the left of Jewish Home will want to work with him While the expectation remains that Mr Netanyahu will be asked to try to form the next government, these new shifts in Israeli politics will change its dynamics.
The prime minister said on his Facebook page after the vote: "According to the poll results it is clear that the citizens of Israel have decided that they want me to continue in my position as prime minister, and for me to form as broad a coalition as possible."The prime minister said on his Facebook page after the vote: "According to the poll results it is clear that the citizens of Israel have decided that they want me to continue in my position as prime minister, and for me to form as broad a coalition as possible."
Thirty-two parties were competing under a system of proportional representation for the 120-member Knesset. Parties must win at least 2% of the total vote to secure seats.Thirty-two parties were competing under a system of proportional representation for the 120-member Knesset. Parties must win at least 2% of the total vote to secure seats.
According to the exit polls, Likud-Beitenu would get 31 seats, and Habayit Hayehudi 12.According to the exit polls, Likud-Beitenu would get 31 seats, and Habayit Hayehudi 12.
Yesh Atid, led by journalist-turned-politician Yair Lapid, is credited with 18 or 19 seats. Analysts say this is a stunning result for a newcomer.Yesh Atid, led by journalist-turned-politician Yair Lapid, is credited with 18 or 19 seats. Analysts say this is a stunning result for a newcomer.
Labour has also performed well, with a projected 17 seats - up from just seven in the outgoing parliament.Labour has also performed well, with a projected 17 seats - up from just seven in the outgoing parliament.
Labour leader Shelly Yachimovich said: "There is a high chance of a shake-up and an end to the Netanyahu government."Labour leader Shelly Yachimovich said: "There is a high chance of a shake-up and an end to the Netanyahu government."
However, if the exit polls are confirmed by official results, Mr Netanyahu would be on course to secure a third term in office - but with a majority that is both substantially reduced and more hardline.However, if the exit polls are confirmed by official results, Mr Netanyahu would be on course to secure a third term in office - but with a majority that is both substantially reduced and more hardline.
Likud-Beitenu's dominance on the right has been challenged by Habayit Hayehudi, led by millionaire businessman Naftali Bennett - Mr Netanyahu's former chief-of-staff.Likud-Beitenu's dominance on the right has been challenged by Habayit Hayehudi, led by millionaire businessman Naftali Bennett - Mr Netanyahu's former chief-of-staff.
He has advocated annexing large parts of the occupied West Bank and rejected the idea of a two-state solution to the Israel-Palestinian conflict.He has advocated annexing large parts of the occupied West Bank and rejected the idea of a two-state solution to the Israel-Palestinian conflict.
The process of forming a government may take several weeks. Full election results are due on Wednesday. The process of forming a government may take several weeks.
Unlike in previous elections, the campaign focused largely on social and economic issues, rather than the prospects for a permanent peace agreement with the Palestinians. Mr Netahyanu, 63, has been in office since the 2009 election. He also served one term as prime minister between 1996 and 1999.
In recent years he has accelerated construction in the West Bank and east Jerusalem, drawing anger from Palestinian leaders and criticism from Western partners.
However unlike in previous elections, the campaign focused largely on social and economic issues, rather than the prospects for a permanent peace agreement with the Palestinians.
There have been unprecedented protests against the rising cost of living and a recent report said nearly one in four Israelis lived in poverty.There have been unprecedented protests against the rising cost of living and a recent report said nearly one in four Israelis lived in poverty.