Prime Minister Netanyahu announcing the Kadima deal (Photo: BBC)

Israeli Prime Minister Benjamin Netanyahu has struck a deal with the opposition Kadima party, avoiding the early general election he had sought. Kadima's recently-elected leader, Shaul Mofaz, is set to be named deputy PM. Mr Netanyahu said their new coalition wanted a "responsible" peace process with the Palestinians and "serious" talks about Iran's nuclear programme. The move came as parliament debated its dissolution before an election Mr Netanyahu had planned for September.

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