Israeli Prime Minister-designate Netanyahu initiates a coalition agreement with the ultra-right wing Yisrael Beitenu party (1) (9), while the European Union, along with the Palestinian and Egyptian leadership, urge the new Israeli government to adhere to the pursuit of a two-state agreement (2) (3) (12). Two Israeli police officers are shot and killed in the West Bank (4) (14). Egyptian brokered negotiations continue in Cairo, where Israeli envoys push for the release of captured soldier Gilad Shalit (7). Hamas and Fatah agree to hold presidential and legislative elections in January, though they remain deadlocked on the question of a national accord government (10).