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was poor. Although Begin's fl exibility in making peace with Egypt enhanced the party's stand-
ing with Israelis, it also led rightists who opposed the deal to split off from the party. Despite
the poor economic policy and the split-offs, Likud won reelection in 1981, but the Lebanon
War in 1982 undermined its position, much the way perceived failures in the 1973 war had
brought down Labor.
Netanyahu revitalized the party and marked its generational transition: he was the fi rst
second-generation leader. From 1996 on, he was the party's head except from 2001 to 2006,
during Sharon's leadership. Netanyahu's term as prime minister from 1996 to 1999 was espe-
cially signifi cant in the party's history, because he accepted the Oslo Accords and the principle
of trading territory for peace, the party's fi rst move toward becoming more centrist.
In 2001, Sharon brought Likud back to power in the aftermath of the collapse of the peace
process. Sharon had long been a controversial fi gure; he was seen as too extreme to lead the
country. Yet because Israel had changed and Sharon had moved toward the center, he was
quite popular during his term in offi ce. Netanyahu, as fi nance minister, also gained in popu-
larity; even some of his most determined enemies approved of his handling of delicate priva-
tization issues.
When Sharon announced his plan to withdraw unilaterally from the West Bank and the
Gaza Strip — an idea rooted in previous Labor Party thinking —he gained approval from many
left-of-center Israelis. His new popularity did not benefi t the Likud, however, since Sharon
left the party to join Kadima. Netanyahu, who opposed disengagement, returned to the party
leadership, but it was hard hit by the defections. In the 2006 election, its voting base reached
an all-time low.
Left with the party's more conservative forces, Netanyahu began moving them toward the
center, which he succeeded in doing without additional defections and despite inner-party
grumbling. In the 2009 election, when many voters returned from their infatuation with Ka-
dima, Likud's vote rose by 250 percent and the party returned to the government. Netanyahu
had succeeded in making Likud into a more centrist party, but with constant pressure from
the right, the party could again split in the future.
National Union and HaBayit HaYehudi
Israel's farthest right-wing parties emerged mostly from two groups: those who defected from
Likud and those remaining after the disintegration of the National Religious Party (NRP).
The National Union and Jewish Home parties both strongly support the Jewish settlements in
the West Bank and oppose withdrawal from any more territory. The main difference between
them is that the former —which absorbed the old Dati NRP in 1999 —has a more religious
complexion. The two parties have worked together at times, but all attempts to unify the right
have failed. In 2009 the National Union won four seats. HaBayit HaYehudi gained three and
joined Netanyahu's coalition.
Religious Parties
Historically, the three main Jewish religious communities in Israel each had its own political
party: the Mizrahi Haredim had Shas; the Datim had the National Religious Party (NRP); and
