Crs Report for Congress - Israel: Background and Relations with the United States: May 18, 2006 - Ib82008 (Paperback)

On May 14, 1948, the State of Israel declared its independence and was immediately engaged in a war with all of its neighbors. Armed conflict has marked every decade of Israel's existence. Despite its unstable regional environment, Israel has developed a vibrant parliamentary democracy, albeit with relatively fragile governments. Prime Minister Ariel Sharon formed a three-party coalition in January 2005 to secure support for withdrawing from the Gaza Strip and four small settlements in the West Bank. In November, however, new Labor party leader Amir Peretz withdrew his party from the government and called for early elections. Sharon then resigned from the Likud party to form a new party, Kadima. On January 4, 2006, Sharon suffered an incapacitating stroke; Deputy Prime Minister Ehud Olmert succeeded Sharon. Kadima placed first in the March 28, 2006, Knesset (parliament) election, and Olmert has formed a four-party coalition government. Israel has an advanced industrial, market economy in which the government plays a substantial role. The economy is now doing very well, and increased social spending is expected. Israel's foreign policy is focused largely on its region, Europe, and the United States. The government views Iran as an existential threat due to its nuclear ambitions ...