The Israeli Prime Minister-elect, Mr Ariel Sharon, marked the first day since his victory with a visit to Jerusalem's Western Wall, and declared that the city would be the "united and indivisible" capital of the Jewish state for all eternity.
Offering prayers of thanksgiving at the wall, Mr Sharon said: "I am visiting Jerusalem, the capital of the Jewish people for the past 3,000 years and the united and indivisible capital of Israel - with the Temple Mount at its centre - for all eternity."
Visiting the Western Wall is a tradition among newly-elected Israeli prime ministers, but Mr Sharon's comment underlined the difference in approach between himself and his defeated rival, the outgoing Prime Minister, Mr Ehud Barak, who had appeared willing to consider some form of compromise with the Palestinians on the status of Jerusalem.
Sovereignty over Arab East Jerusalem, which was captured in the 1967 Middle East war and includes the Temple Mount, is a major bone of contention in Israeli-Palestinian relations. Palestinians want East Jerusalem as the capital of a future state: their current intifada or uprising began four months ago after Mr Sharon made a highly publicised visit to the Temple Mount. The Israelis say the visit was used as a pretext by the Palestinians.
The disputed hilltop of the Temple Mount is the location for two mosques, built above the buried ruins of the biblical Jewish Temples. Israel claims sovereignty, but Muslims have day-to-day control of the hilltop compound while Jews pray at the Western Wall below. Mr Sharon's appearance at the Western Wall, which forms one exterior wall of the Temple Mount and is controlled by Israel, was not considered as provocative as his previous visit. However, Mr Sharon struck a more conciliatory note when he told reporters at the wall: "I will bring unity and I'll bring peace to the citizens of Israel and stability to the Middle East." Beforehand he had visited the grave of his wife, Lily, who died of cancer last year, at their farm in southern Israel.
In one of the most convincing election victories in Israel's history, Mr Sharon beat Mr Barak by 62.5 per cent to 37.4 per cent. An official Palestinian reaction was given by a top aide to President Yasser Arafat. Mr Navil Aburdeneh said they would work with Mr Sharon, "as long as the new Israeli government will commit itself to the peace process".
However, Mr Arafat's Fatah faction, usually more militant than the general Palestinian leadership, called on its leaders "not to have any communication or negotiations with Sharon". The group said: "In the wake of the election of the killer Sharon, we are calling for the escalation of the Intifada".
Once official election results are announced in a week's time, Mr Sharon will in theory have 45 days to form a coalition government and have it approved by the Knesset, the Israeli parliament. But there is an additional complication arising from the fact that the Knesset must pass the 2001 budget by March 31st. If the budget is not approved, the Knesset will be dissolved and there will be a general election.
The Prime Minister-elect has urged the Labour Party to take part in a national unity government, although the decision of Mr Barak to step down as leader may mean that Labour will be distracted by the process of choosing a successor. In the absence of Labour participation, Mr Sharon would have to settle for a narrower alliance of rightwing and religious parties.
Speaking in Washington, President Bush pledged to work with Mr Sharon to achieve peace in the Middle East. "We're going to play the hand we've been dealt," he said, "and we're going to play it well".