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Current Prime Minister Benjamin Netanyahu and Yair Lapid, the leaders of the two biggest parties to emerge from this week’s election, met yesterday in preliminary coalition talks in Jerusalem.

A joint statement said, “The prime minister and Mr. Lapid discussed the challenges facing the nation and ways to deal with them… The meeting, which lasted two and a half hours, was held in a very good atmosphere, and it was agreed that they would meet again soon.”

It is believed that the two main priorities for Lapid’s Yesh Atid party are implementing a fairer military draft system and a resumption of talks with the Palestinians. Netanyahu has already highlighted expanding the military draft, affordable housing and electoral reform as his priorities.

Formal coalition talks will not take place until next week, after the official election results have been submitted to President Shimon Peres, who will then consult with party leaders over who to invite to form a government. However, speculation is rife over the composition of the incoming coalition. The Jerusalem Post claims that Netanyahu and Lapid agree on including Jewish Home and Kadima, which it was confirmed yesterday had received two Knesset seats. However, Netanyahu favours including ultra-Orthodox parties Shas and United Torah Judaism, while Lapid wants to include Tzipi Livni’s Hatnuah party. Yediot Ahronot claims that Yesh Atid leaders are divided over the inclusion of ultra-Orthodox parties given Yesh Atid’s commitment to a universal draft, which Shas leader Aryeh Deri said yesterday would spell “no other option but to be in the opposition.”

Netanyahu reportedly spoke with Jewish Home leader Naftali Bennett yesterday for the first time since Tuesday’s election. He also invited the leaders of the Labour Party and the left-wing Meretz party to meet with him out of courtesy. Labour head Shelly Yachimovich reiterated that her party will form “a fierce opposition.”