Netanyahu pledges peace, eyes better US ties

Israel's Benjamin Netanyahu extended a "hand of peace" to the Palestinians Wednesday as he was formally tasked with forming a government after his surprise reelection following a divisive campaign.
The prime minister also pledged to shore up crumbling ties with Washington while continuing to oppose an emerging nuclear deal with Iran as he accepted the task of putting together a new coalition government.
Last week's victory by Netanyahu's right-wing Likud party came after a bitterly fought campaign that exposed deep splits within Israeli society and a particularly damaging rift with key ally Washington.
Netanyahu himself was at the centre of most of the controversy after he ruled out the establishment of a Palestinian state if reelected, pledged to build more settler homes in annexed east Jerusalem and played the race card at the expense of Israel's Arab minority.
But after President Reuven Rivlin asked him to form the next government, he said it was time to move on.
Israel's hand is "held out in peace to our Palestinian neighbours," he said, although real peace will "only be assured if Israel is strong".
And he pledged to shore up ties with Washington, while at the same time continuing to oppose the nuclear deal with Iran it is pushing.
"We very much appreciate, and will make sure to preserve, our covenant with our close friend, the United States and, at the same time, we will continue to act to prevent the emerging agreement with Iran -- an agreement which will endanger us, our neighbours and the world," he said.
- 'A different approach' -
The issue of Iran and how to resolve the conflict with the Palestinians have been at the heart of an escalating dispute with the White House, which analysts say has seen unprecedented levels of public hostility.
The US administration's anger at Netanyahu hit boiling point earlier this month when the premier went to Washington to address Congress in a bid to drum up opposition to the Iran deal.
Things worsened considerably during on election day, with President Barack Obama particularly incensed by Netanyahu's warning that Arab Israelis were going to the polls "in droves."
Although it secured him reelection, it cost him dearly on the diplomatic front, with Washington sparing no effort to make its displeasure known.
"The issue is a very clear, substantive challenge," Obama said of his disagreement with Netanyahu over the Israeli-Palestinian conflict.
"We believe that two states is the best path forward for Israel's security, for Palestinian aspirations and for regional stability... Prime Minister Netanyahu has a different approach."
His remarks were welcomed by the Palestinians.
"The US is finally coming to the realisation that Israeli actions are no longer acceptable," said senior Palestinian official Hanan Ashrawi.
"It is time for the US government to translate its statements into action and reconsider its unquestioning support of Israel and its military aid to Israel."
- 'Your responsibility' -
Six of the 10 factions elected to parliament have thrown their support behind Netanyahu, who now has four weeks to complete his task, although Rivlin can extend the deadline by another 14 days if necessary.
The real battle will begin Thursday, when potential coalition partners battle for portfolios and prestige.
Besides Likud, the government is expected to include far-right Jewish Home, hardline anti-Arab Yisrael Beitenu, ultra-Orthodox parties Shas and United Torah Judaism and the centre-right Kulanu.
Such a coalition would hold 67 of the Knesset's 120 seats.
Shortly before the ceremony, Rivlin took Netanyahu to task over remarks on Arab voters.
"How awful would it be, if the democratic duty to vote, were to be seen as a curse, or something from which to be warned off," he asked.
"One who is afraid of votes in a ballot box will eventually see stones thrown in the streets."
Later, as he stood next to Netanyahu at the podium, Rivlin said it was his responsibility to build a government that would work to heal the damage.
"We've been through a difficult election campaign ... From all sides, things were said that shouldn't have been -- not in a Jewish state and not in a democratic state," Rivlin said.
"Today it is time to start healing the wounds. That responsibility... is on your shoulders."
Since the election, Netanyahu has sought to backtrack on his remarks on a Palestinian state, and he issued a public apology to the Arab community.
In a further bid to avoid further rancour, his office reportedly suspended plans for 1,500 settler homes in the east Jerusalem neighbourhood of Har Homa, Ynet news website said in a report which his office refused to confirm or deny.