When the two-state solution was first proposed in the Middle East in the early 1970s it was envisaged as a deal between a Labor Party-led government on the Israeli side and the PLO led by Fatah on the other. Even as it was first being proposed in 1973 it was almost too late. On December 31, 1973 elections demonstrated that the brand new Likud was a competitive challenger to the ruling Labor Party. In May 1977 Menahem Begin, the leader of the 1940s Irgun Zvai Leumi (National Military Organization) or Etzel was elected prime minister at the head of the Likud. He simultaneously went about negotiating peace with Egypt and colonizing the West Bank and Gaza with Jewish settlements. A Labor-led government without the Likud would not return to power for fifteen years.
Labor coalitions were in power for six years out of that decade. But starting in 1996 both Labor and its more dovish coalition partner Meretz began losing seats. By 2009 they had lost three-fourths of the seats they had when Rabin formed a government in 1992. That year--1992--was the only year since 1977 that the Center-Left had more seats than the Right and the religious parties. Barak in 1999 decided to build a broad coalition with the religious parties. These parties deserted his coalition as soon as he departed for Camp David in July 2000--even before he made his radical concessions on Jerusalem and borders.