Israeli Prime Minister-designate Benjamin Netanyahu said on Wednesday the government he is forming will be a "partner for peace" with the Palestinians.
Speaking a day after enlisting the centre-left Labour Party into a political partnership, Netanyahu said his intention to shore up the Palestinian economy would not be a substitute for peace talks.
"I think that the Palestinians should understand that they have in our government a partner for peace, for security and for rapid economic development of the Palestinian economy," he said in a speech in Jerusalem.
"Peace: It's not the last goal. It's a common and enduring goal for all Israelis and all Israeli governments -- mine included," Netanyahu said.
Netanyahu has shied away from declaring support for a two-state solution that is at the heart of U.S. peace efforts reaffirmed by President Barack Obama in a news conference on Tuesday.
But under a coalition deal with Labour's Ehud Barak that could help Netanyahu avoid friction with Obama over Middle East peace, Netanyahu's right-wing Likud agreed to respect all of Israel's international agreements -- a formula that includes accords envisaging Palestinian statehood.
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