Netanyahu, Barak agree on coalition

Israeli Prime Minister-designate Benjamin Netanyahu won Labour chief Ehud Barak's agreement yesterday to a political partnership that could help Israel's next government avoid friction with Washington on Middle East peace.

Under the coalition deal with Barak, an administration led by Netanyahu's right-wing Likud would respect all of Israel's international agreements, a Labour Party negotiator said, a formula that includes accords envisaging Palestinian statehood.

"We are talking about there being a peace process," said the negotiator, Shalom Simchon, giving details of the agreement.