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Barak now must form a coalition government RELATED VIDEO To view the latest video streams on the Israeli elections, use the arrow buttons below to scroll through the video gallery.        Windows Media Real        28 K 80 K  ISRAEL ELECTIONS:  Prime minister Barak (Labor) 56.08% Netanyahu (Likud) 43.92% Source: Israel Central Election Commission Knesset One Israel - 26 seats Likud - 19 seats Shas - 17 seats Meretz - 10 seats Center - 6 seats Shinui - 6 seats Yisrael B'Aliya - 6 seats National Religious Party - 5 seats United Arab List - 5 seats United Torah Judaism - 5 seats National Union - 4 seats Yisrael Beiteinu - 4 seats Hadash - 3 seats Am Ehad - 2 seats Balad - 2 seats Source: Israel Central Election Commission  IMAGE GALLERY: A landslide onto shaky ground  IN-DEPTH SPECIAL: Israeli elections

May 20, 1999
Web posted at: 2:53 a.m. EDT (0653 GMT)

In this story: Barak wins praise from Arab ally Deri remains obstacle to inclusion of Shas Labor-Likud grouping attractive to secular Jews Begin quits politics Lebanon warns of negotiations 'trap' RELATED STORIES, SITES

JERUSALEM (CNN) -- As Israeli Prime Minister-elect Ehud Barak sought support from allies and rivals to build a broad-based coalition government, final election results cost his party an expected seat in parliament.

On Wednesday, Israel's Central Election Committee formally declared Barak the winner of Monday's general elections, holding 56.08 percent of the vote compared with 43.92 percent for incumbent Prime Minister Benjamin Netanyahu.

According to final results, Barak's One Israel alliance garnered 26 seats in the 120-member Knesset, one less than projected in unofficial results earlier in the week.

The liberal Meretz party gained a 10th seat, which could go to the first female Arab lawmaker in Israel's parliament.

The seat loss would not affect Barak's leverage in parliament because the liberal party will likely be a part of any government Barak forms.

Barak appeared to be determined to form a wide coalition, perhaps including his defeated rivals from the conservative Likud Party, despite the problems that come with it.

Formal talks on the makeup of Barak's government were not expected to begin until the weekend, but his election set off a scramble for posts in the cabinet and coalition.

Barak has 45 days to form a new government, with Netanyahu remaining as caretaker prime minister until then.

Barak must form a majority coalition among the 15 parties represented in parliament. Netanyahu's Likud, with 19 seats, became the second-largest party after losing seats in Monday's vote.

Jordan's King Abdullah, on a visit to Washington, welcomed Barak's election as prime minister Wednesday, saying he already feels he has a rapport with Barak.

"We see eye-to-eye, and we know there is a commitment by this new prime minister and a very strong working relationship between him and (Palestinian Authority) President (Yasser) Arafat," Abdullah said.

But the king also cautioned against expectations that the Middle East peace process will move quickly under Barak, who has pledged to fulfill Israel's promises to cede more land to the Palestinians under October's Wye River land-for-security agreement, a deal that stalled under Netanyahu.

If "nothing happens for four or five months down the line, frustration could have an even worse backlash than we were several months ago," King Abdullah said.

Deri remains obstacle to inclusion of Shas

To form a government, Barak must choose between aligning himself with Netanyahu's much-weakened Likud or seeking an ally with the newly strengthened religious party, Shas.

Shas became the third-largest party after Monday's elections, claiming 17 seats in the Knesset. The party mainly represents religious Jews of Middle Eastern and North African origin.

Barak aides say their boss prefers to bring Likud into the government, and the prime minister-elect said after the election that he would not negotiate -- directly or indirectly -- with Shas leader Aryeh Deri, who is appealing a bribery conviction.

Deri resigned from parliament Tuesday in a move widely seen as a step to boost Shas' chances of a place in the government. He said, however, that he would stay on as chairman of Shas.

Barak rejected that compromise Wednesday, telling Maariv newspaper that "the public and I cannot accept a fictitious situation in which Deri ... conducts negotiations by remote control."

Labor-Likud grouping attractive to secular Jews

A coalition with Likud could be made easier by Netanyahu's sudden decision to step down as the party's leader after his loss Monday. A Labor-Likud coalition would reap Barak a large secular majority and satisfy other potential partners.

Many secular Jews are concerned by the influence of Shas and religious movements like it. They resent the military draft exemption that ultra-Orthodox Jews get, and the massive government funding Orthodox welfare projects have received.

Secular Jews are also angry over religious restrictions and pressure to close business establishments on the Jewish Sabbath.

"With the Likud, we have an understanding on what the state of Israel is and how it looks. With Shas, we do not have an understanding like that," said Avraham Burg, a senior Labor Party member.

A broad coalition would give Barak political cover to make some concessions in revived peace negotiations with the Palestinians -- something he says he's determined to pursue.

But it would limit his ability to make the major territorial concessions Arafat and President Clinton will be seeking.

Begin quits politics

One of Barak's former rivals, meanwhile, announced Wednesday he would quit politics after his party garnered only three seats in the Knesset on Monday.

Benny Begin, the son of the late Likud Prime Minister and Camp David Accords signatory Menachem Begin, said his departure was the result of the poor showing by his hawkish National Union party. Begin had dropped out of the race for prime minister on Sunday.

"Because of the limited usefulness I see in my continued service, I have reached the conclusion that it is best to cease my activity in the public arena," Begin said.

Begin had been a Cabinet minister in Netanyahu's government, resigning in 1997 after Netanyahu agreed to cede most of the West Bank town of Hebron to the Palestinians. He later broke completely with Likud to form the National Union, accusing Netanyahu of compromising Likud's principles.

Lebanon warns of negotiations 'trap'

While much of the attention since the elections has focused on the new government's dealing with the Palestinians, Lebanon's prime minister warned that Barak might try to "trap" Lebanon into negotiations over a promise to withdraw Israeli troops.

Barak has promised to pull troops out of Israel's security zone in southern Lebanon, Israel, which has had troops in Lebanon since 1985, says it needs the strip to prevent attacks by guerrillas in Lebanon on the Jewish state.

Lebanese Prime Minister Salim Hoss said Wednesday he would look "cautiously" at any Israeli offer to leave Lebanon. Israel offered last year to leave Lebanon if Lebanon guarantees the security of its border.

That implies negotiations that Lebanon and its neighbor and supporter, Syria, say are unacceptable without putting an Israeli withdrawal from the Golan Heights on the table.

"Israel's political history, and the previous attempts of its leaders, made us unable to believe Israeli statements until we see the action," Hoss said.

Senior White House Correspondent Wolf Blitzer, The Associated Press and Reuters contributed to this report.