After 70 percent of the votes in Tuesday's elections were counted, the Labor Party appeared set to receive 20 seats in the upcoming Knesset.
Following initial exit poll results, Chairman Amir Peretz told supporters at the party's Petah Tikva headquarters that "a real social-democratic movement was established in the state of Israel tonight... We are going to establish a new society."
Despite the relatively disappointing results - Labor had been hoping to win at least 24 seats - hundreds of celebratory Labor activists greeted Peretz with applause and cheer.
"I want you to know I love you," Peretz told his supporters. "Despite the fact that others tried to take the wind from the sails out of the social revolution, it lives and breathes... we are the only party that will make sure the next government will march toward peace and social justice."
Labor figures insisted that the difference between their party's results and those of Kadima - set to receive 28 seats - is negligible. MK Isaac Herzog said, "Before the elections, everyone mourned the Labor Party, but it succeeded in changing the order of the day in the state."
Avishai Braverman, third on Labor's list, also invoked Labor's emphasis on social issues, saying, "We have changed the agenda in the sate. Even after the Yom Kippur war, it took four years for an upheaval to take place. Today, the bang has begun to roll."
In praise of the party's chairman, Shelly Yachimovitch (Labor) called Amir Peretz the "undisputed leader of the Labor Party."
Former prime minister Ehud Barak, who refrained from campaigning for Peretz due to political differences between the two, congratulated Peretz for preserving Labor's strength.
Labor MK Yuli Tamir said that the party will sit in a coalition only if its political and social platform is adopted. "We have clear guidelines for a coalition we're willing to sit in," Tamir said.
Dan Yatom of Labor said the results of the exit polls showed a defeat for Kadima and victory for Labor.
"According to these exit polls this is a severe defeat for Kadima. This is a big achievement for the Labor Party," he said.
"As far as the coalition is concerned, we will wait and see. I am very satisfied with these results."
Meretz disappointed with only five seats
Disappointment was palpable in the Meretz camp on Tuesday night, after 70 percent of votes counted pointed to only five seats for the leftist party, down from six in the 2003 elections.
Speaking before party activists in Tel Aviv, Chairman Yossi Beilin expressed hope that the official results would give the party another seat. Beilin noted that Meretz would be ready to sit in the opposition, and would not be willing to join a coalition government unconditionally.
"We will not sit in a coalition that won't make changes to the welfare system and return some government allowances. We will not sit in a government with the Likud, National Union or Yisrael Beiteinu."
If Meretz does not pick up a sixth seat, Zvia Greenfield, ultra-Orthodox writer, peace activist and doctor of philosophy, will not make it into the Knesset. Greenfield said Tuesday night, "I am worried about the disintegration of responsibility among the public. I'm worried that a party with roots and long-term commitment does not win, while a fake party that nobody has heard of is growing. This is a disconcerting sign of political instability."
Greenfield expressed regret that she would not be a part of the next Knesset.
By Haaretz Service and News Agencies
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