Abstract: | Based on the assumption that foreign and defence policy grows out of the domestic political arena, this paper examines the 1988 elections in Israel with a particular focus on the territorial issue of Judea, Samaria and the Gaza Strip. The two major parties, Likud and Labour, share certain fundamental views, and this fact contributed to the formation of a National Unity Government during 1984–88. Yet they also differ markedly in terms of ideological outlook and more specifically in policy towards peace-making with the Arabs and the future of the territories. The election campaign reflected the differences and incompatibilities between the two major parties, while the results indicated a political stalemate. The domestic party arena in Israel has not produced any clear long-term strategy regarding peace and the territories. This deadlock suggests incoherence in the Cabinet, the impotence of the legislature and the likelihood that external events alone can alter the political status quo. |