The Likud Party had elected Yitzhak Shamir…

The Likud Party had elected Yitzhak Shamir to succeed the retiring Menachem Begin as its new leader in September 1983, t, but he loses the prime ministry in the indecisive elections of July 1984.

Labor outpolls the Likud in the election, but not by a margin sufficient to form a government.

To rescue the economy and extricate Israel from its military entanglement in Lebanon, Labor and Likud form a national unity government in September.

The agreement gives the premiership to Labor party head Shimon Peres for twenty-five months, at the end of which the premiership will go to Likud hard-liner Shamir, with the understanding that the other will take the position of deputy prime minister of foreign affairs.

Notably, Yitzhak  is to be defense minister for both men.

Ariel Sharon returns to the cabinet as minister of industry and trade.