The outgoing Israeli Prime Minister and Labour Party leader, Mr Ehud Barak, has announced his intention to quit politics. This follows his crushing defeat at the hands of the conservative Likud Party candidate, Mr Ariel Sharon, in the country's prime ministerial election.
"I intend to quit my post as a member of parliament and party leader once the new government is formed," he said after the vote where, according to exit polls, he was defeated by 19 percentage points, scoring only 40.5 per cent to Mr Sharon's massive 59.5 per cent.
There were scenes of jubilation among Mr Sharon's hardline supporters over his landslide victory with some of them waving banners proclaiming the end of the peace process and the Oslo accords.
Palestinian spokesmen meanwhile predicted difficult days ahead and, despite his wide margin of victory, there were doubts over Mr Sharon's ability to assemble a durable coalition from the plethora of parties in the Israeli Knesset.
The turnout, at an estimated 62 per cent, was said to be among the lowest ever in a country where voters normally go the polls in large numbers. Turnout was especially low among Israeli Arabs who make up about 12 per cent of the electorate and generally support the Labour Party.
On this occasion, because of disillusionment with Mr Barak and anger over the killing of 13 demonstrators by Israeli forces last October, most of them stayed at home.
This was the first time Israel had held an election solely to fill the post of prime minister. The two main television stations each commissioned professional pollsters to conduct exit polls.
Mr Barak came to power 19 months ago following a landslide victory over his right-wing predecessor, Mr Benjamin Netanyahu, but was unable to deliver on his plan to achieve a "Peace of the Brave" with the Palestinians.