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.
"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".
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.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
