Eighteenth Government of Israel

The Eighteenth Government emerged from one of the most consequential elections in Israeli history. On May 17, 1977, Likud won 43 Knesset seats while the Ma'arach, or Labor-led Alignment, fell to 32. It was the first time since the state's establishment that Mapai and its successor had lost power.[7][3] Labor's defeat reflected several converging factors: dissatisfaction following the trauma of the 1973 Yom Kippur War, perceptions that Labor had grown out of touch and was affected by corruption, the revolt of many Sephardi voters who had felt marginalized by Labor institutions, and opposition to Labor's economic policies.[3]

The political reversal became known as the mahapakh, or "big upset," and fundamentally reshaped the party system.[3] Menachem Begin, who had led the parliamentary opposition since the state's founding, became prime minister as a Likud-led bloc of right-wing and centrist parties ended almost three decades of Labor Party governance.[4][8]

Begin presented his government to the Knesset on 20 June 1977. His address emphasized the Jewish people's historic connection and right to the Land of Israel, stronger ties with the United States and France, renewed ties with the Soviet Union, and a call for Arab leaders to meet him to discuss peace.[9]

The coalition was built around Likud — which incorporated Ariel Sharon's Shlomzion — the National Religious Party and Agudat Israel.[3] Agudat Israel supported the coalition without accepting ministerial portfolios, and its inclusion reflected the haredi public's growing political role.[3][10] Moshe Dayan, who had been elected on the Ma'arach list, joined Begin's government as foreign minister in an individual capacity.[3][11]

Begin initially chose a narrow coalition with the religious parties rather than immediately forming a broader arrangement with Dash, the Democratic Movement for Change, which had won 15 seats under Yigal Yadin. The Knesset approved the government by 63 votes.[12] Sources distinguish among coalition membership, parliamentary support, and the investiture vote: one reference describes a 61-member coalition, while Ynet reports support from 62 members.[3][11] Globes gives an initial coalition count of 60, while the separate 63 figure refers to the approval vote.[13][12] When Dash joined approximately four months later, reported coalition strength rose to either 75 or 77 members.[11][13]

The government was the first in Israel's history without any Labor party, although Dayan joined as an individual. Many of its ministers had never previously held ministerial office.[3]

The defining diplomatic achievement of the Eighteenth Government was the peace process with Egypt. Egyptian President Anwar Sadat arrived in Israel on November 19, 1977, and addressed the Knesset the following day.[8][5] The Israel State Archives describes the visit as three days of excitement and elation accompanied by continual tension for the police and security personnel protecting Sadat.[9] Begin's response included the declaration, "No more war, no more bloodshed."[5]

Egypt and Israel entered negotiations under American auspices following the Jerusalem visit.[4][8] The talks culminated in the Camp David Accords of September 17, 1978, which created a framework for Egyptian-Israeli peace and included a detailed proposal for Palestinian self-government.[4][5] The Knesset approved the agreements by 84 votes to 19, with 17 abstentions.[14]

Begin and Sadat signed the Israel–Egypt peace treaty on March 26, 1979, on the White House lawn in Washington, D.C. It was Israel's first peace treaty with an Arab state and ended the approximately thirty-year state of war between Israel and Egypt.[3][4] The treaty required Israel to withdraw from Sinai and replaced cease-fire lines and armistice arrangements with mutually recognized international boundaries.[4] Israel also evacuated its Sinai settlements, including Yamit, as the withdrawal was completed in April 1982, after the Eighteenth Government's term.[15][16]

The Palestinian autonomy track included in the Camp David framework did not produce an agreement, and dissatisfaction with its lack of progress contributed to the later resignations of Moshe Dayan and Ezer Weizman.[3] Some Likud members opposed the peace treaty and the return of Sinai, although a large Knesset majority approved it with support from the opposition Alignment.[3] Begin and Sadat received the 1978 Nobel Peace Prize for their roles in the peace process.[5]

Alongside the Egyptian peace process, the Eighteenth Government expanded Jewish settlement in the West Bank — known by its original, indigenous Jewish name of Judea and Samaria — and in the Gaza Strip. Begin's approach reflected a deep ideological attachment to these territories and a belief in the Jewish right of settlement there.[17]

As agriculture minister, Ariel Sharon played a major role in promoting the settlement program. A permanent settlement was established at Elon Moreh, Bet Hadassah in Hebron was occupied, and the Jewish population in Judea, Samaria, and Gaza rose to approximately 8,300 during the period.[3]

Settlement activity contributed to increasing political polarization. Peace Now was established in 1978 in opposition to the settlement enterprise, while the so-called "Jewish Underground" emerged in 1980 at the other end of the political spectrum.[3]

The government's domestic program represented a substantial departure from Labor-era policies. Finance Minister Simha Ehrlich pursued economic liberalization and a more market-oriented policy after decades in which the state and the Histadrut had played central economic roles.[3] A later retrospective argued that the policy contributed to crisis and inflation in the short term while helping shape Israel's longer-term movement toward a free-market economy.[18]

The government advanced social initiatives including the Neighborhood Rehabilitation Project, free compulsory education, and an income-support law.[18] Its religious coalition partners also secured changes to the existing religious status quo, including amendments concerning anatomy and pathology, abortion, and women's service in the Israel Defense Forces.[3]

In 1980, the Knesset enacted the Jerusalem Law, one of the government's most prominent legislative measures concerning the status of Israel's capital.[10]

In March 1978, Israel conducted the Litani Operation in southern Lebanon after the coastal-road terrorist attack. The operation targeted Palestinian terrorist organizations that had established bases in southern Lebanon.[3] Israeli forces withdrew in June under intense international pressure without removing the PLO from its bases, leaving the operation's principal objective only partly achieved.[17]

On June 7, 1981, Israeli aircraft destroyed Iraq's nuclear reactor near Baghdad. The strike occurred during the final weeks of the Eighteenth Government and shortly before the June 30 election.[10][6]

Despite its landmark achievements, the Eighteenth Government experienced mounting internal strain. Dash disintegrated after joining the coalition, and former members, including Justice Minister Shmuel Tamir, left the government. Moshe Dayan and Defense Minister Ezer Weizman also resigned amid dissatisfaction with the lack of progress on Palestinian autonomy under the Camp David framework.[3]

A deteriorating balance of payments and rising inflation produced repeated changes in the finance portfolio. Simha Ehrlich was succeeded by Yigael Hurwitz, who later resigned when his policies failed to obtain government support, and Hurwitz was replaced by Yoram Aridor.[3] By December 1980, the government's Knesset majority had fallen from 76 to 63.[3]

The fragmentation of Dash and the accumulation of coalition departures contributed to the decision to hold an early election on June 30, 1981.[1] Likud won 48 Knesset seats and Begin remained prime minister.[6] The Eighteenth Government formally ended on 5 August 1981, when Begin's next government took office.[1][2]

The Eighteenth Government occupies a singular place in Israeli political history. Its formation ended almost three decades of uninterrupted Labor-led government and began a new period in which Likud became one of the country's principal governing forces.[3][4] The transfer of power also demonstrated that Israel's parliamentary system could accommodate a major change of governing bloc.

The Israel–Egypt peace treaty became the government's central diplomatic legacy. It was Israel's first peace treaty with an Arab state, ended the state of war with Egypt, and established mutually recognized boundaries following Israel's withdrawal from Sinai.[3][4] The accompanying Palestinian self-government framework did not achieve the intended agreement, but autonomy negotiations remained an important and divisive part of the government's diplomatic record.

The settlement program also left a substantial and contested legacy. Ariel Sharon's promotion of Jewish communities in Judea, Samaria, and Gaza increased the Jewish population there and was accompanied by growing polarization, including the formation of Peace Now and the emergence of the so-called "Jewish Underground."[3]

Economically, the government broke with the more statist model associated with the Labor era by pursuing liberalization.[3] A supportive later retrospective credited those policies with helping shape Israel's free-market economy, while acknowledging the accompanying short-term crisis and inflation.[18] The Neighborhood Rehabilitation Project, education measures, income support, and the 1980 Jerusalem Law were additional elements of its domestic record.[18][10]

The coalition also elevated the National Religious Party and Agudat Israel as essential governing partners. Their participation gave religious parties significant leverage over legislation concerning religious practice, abortion, medical procedures, and military service for women.[3][10]

A central debate surrounding the Eighteenth Government concerns the coexistence of its two most consequential territorial policies: withdrawal from Sinai in exchange for peace with Egypt and expanded Jewish settlement in Judea and Samaria and Gaza. The Camp David Accords proposed Palestinian self-government, yet the autonomy negotiations failed to progress and the government simultaneously strengthened settlement activity.[3][4]

The Litani Operation also produced an inconclusive legacy. Although it targeted terrorist organizations operating from southern Lebanon after the coastal-road attack, the Israeli withdrawal under international pressure left PLO bases in place and did not resolve insecurity along the northern border.[3][17]

Sources report different figures for the government's initial parliamentary base. One reference gives a 61-member coalition and Ynet reports support from 62 members, while another Ynet account records 63 votes at investiture.[3][11][12] Globes instead reports an initial coalition of 60 and an expanded coalition of 75 after Dash joined, compared with Ynet's figure of 77.[11][13] These figures appear to measure different forms of coalition membership and parliamentary support.

The peace treaty itself faced opposition from some Likud members who rejected the complete withdrawal from Sinai and evacuation of Israeli settlements, even though the treaty won a large Knesset majority with Alignment support.[3][15] The government's economic legacy is likewise interpreted differently: its liberalization was accompanied by inflation and financial disruption, while supporters later credited it with advancing Israel's transition toward a freer market.[18]