Poll rivals both claim right to form Israeli government

Israel was heading for a period of political paralysis today after its two main parties both claimed victory in the country's general election.

Tzipi Livni, leader of the centre Kadima party, claimed she was ready to lead the nation, with a predicted 28 seats in the Knesset.

But Benjamin Netanyahu maintained that his Right-wing Likud party, with 27 seats,could still form a government.

In the intense horse trading, which could last for days or even weeks, both sides will now seek partners among the smaller parties to build a coalition government.

Mr Netanyahu's assertion of victory is founded on polls which suggest he could lead a majority Right-wing bloc in the Knesset with 65 seats, compared with a maximum of 57 among the centre and Left parties.

The election followed the collapse last year of attempts by Ms Livni to form a new government after prime minister Ehud Olmert was forced to step down amid corruption allegations.

The campaign was overshadowed by Israel's military offensive against the Hamas-controlled Gaza strip, of which Ms Livni was a principal supporter.

Analysts believe a strongly Right-wing government would make President Barack Obama's hopes of achieving a lasting settlement in the Middle East more difficult.

Despite her role in the Gaza offensive, Ms Livni has offered a land-for-peace deal with the Palestinians.

The position of Avigdor Lieberman, the Moldovan-born leader of the hard-Right Yisrael Beiteinu party, which draws its strength largely from Russian immigrants, will be crucial.

His strong showing in the polls is expected to push the Labor Party into fourth place once final results are through in several days. Ms Livni, whose party came from behind to close the gap with Likud in the last few days, told cheering supporters last night: "Today the people chose Kadima. We will form the next government. The land of Israel does not belong to the Right, just as peace does not belong to the Left."

Although she invited Mr Netanyahu to join her in a coalition of national unity, the former prime minister told his supporters he would lead the country "with God's help".

Mr Lierberman and the smaller Jewish religious parties are more likely to form alliances with Likud because of their opposition to land deals with the Palestinians. However, Mr Lieberman stressed last night: "We are not ruling anyone out."

Mr Olmert is expected to remain as caretaker prime minister until the new government is formed.