Shimon Peres Becomes the 8th Prime Minister of Israel

Shimon Peres forms a coalition government with Alignment, Likud, NRP, Agudat Yisrael, Shas, Morasha, Shinui and Ometz. The Likud and Labor parties agree to have a rotating Prime Ministership, meaning that the leader of the Likud, Yitzhak Shamir, will become Prime Minister again in two years.