Israel has reduced the activity of its…

Israel has reduced the activity of its ground forces in the fighting in Lebanon and relied more on air power, which seems to have a deterrent effect.

In early January, the Cabinet authorizes in principle a new policy of retaliation against Lebanese infrastructure targets in response to Hezbollah Shi'ite fighters' shelling Israeli civilians.

In early 1999 also, after a legislative defeat on the budget, Benjamin Netanyahu calls for early elections and soon suspends the Wye agreement.