He will probably have to compromise with lawmakers from three left-of-center parties to pass legislation and remain in power.
Israel's Arab citizens, 17 percent of the electorate, vote for the liberal and left-of-center parties.
They moved to recast it as a left-of-center party.
They differ fundamentally from programs advocated by the guerrillas and left-of-center political parties.
The pro-business political trend is apparent across Europe, he added, even where left-of-center parties control the biggest countries.
"My own view is that historically the best position that Congress has always taken is of a left-of-center party," he said.
Reformist and left-of-center parties have usually won a majority of votes and seats.
The other main opposition group, the left-of-center Party of the Democratic Revolution, accepted the plan.
After 1989, Communists in Eastern Europe quickly transformed themselves into left-of-center parties.
The Independent Democratic Movement, a small, moderately left-of-center party, completed the coalition.