When he emerged bruised but unbeaten following the Jan. 22 elections, Israeli Prime Minister Benjamin Netanyahu faced some tough choices.
Kadima party chairman Shaul Mofaz was approved as a government minister and Labor party chairwoman Shelly Yachimovich was appointed head of the opposition.
Palestinian Authority President Mahmoud Abbas said on Tuesday he was ready to engage with Israeli Prime Minister Benjamin Netanyahu on a Middle East peace agreement if he proposes "anything promising or positive."
The leaders of rival Palestinian factions Fatah and Hamas signed a deal in Qatar on Monday to form a unity government of independent technocrats for the West Bank and Gaza, headed by Palestinian Authority President Mahmoud Abbas.
Rival Palestinian factions Fatah and Hamas agreed to hold elections next May and are due to establish a caretaker government in the coming weeks which will exclude Prime Minister Salam Fayyad, Palestinian sources said Tuesday.