In poignantly low voter turnout, the Knesset ended up being more fragmented than ever. However, a party dedicating itself to centrism and the sort-of-new Olmert, won most seats - 28 out of 120. I don't know if anyone has figured out precisely what mandate this gives the new Olmert government yet, but it seems a strong supposition that Olmert will establish - unilaterally, bilaterally, or multilaterally - the borders between the (Arab) state of Palestine and the state of Israel.
I'm not going to pretend to understand the dynamics of Israeli politics - it's unbelievably complex and confusing unless you study and discuss it every day - but I did find this discussion in Ha'aretz interesting.
The article is an argument between Ari Shavit and Chaim Ramon, in which they mostly agree on the end state (or rather states) but can't agree on the protocol for getting there.
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