Kadima Likud-led government was formed. Livni was defeated in the 2012 leadership election, losing out to the more conservative Shaul Mofaz. Following Livni's defeat, the party's progressive wing broke away at the end of 2012, to form a new centre-left party, Hatnuah, which Livni led from the outset. In the 2013 elections, Kadima became the smallest party in the Knesset, winning only 2 seats and barely passing the electoral threshold. It did not enter the 2015 elections. To date, it is the only party other than Mapai/Labour or Likud to have led a government in Israel. Prior to Kadima's formation, the
Tzipi Livni by Livni's decision to leave Likud and also accepted her support for the two-state solution, although it "hurt her." Livni entered politics in 1995 when she tried unsuccessfully to win a place on Likud's list to the Knesset. She was appointed as head of the government-owned corporations authority in Netanyahu's government, and oversaw the privatization of a number of companies. While in this capacity, in 1998 she was considered a prominent candidate to become director general of the Finance Ministry. Livni would later rue the decision to privatize certain companies and natural resources. As Hatnuah chairwoman in 2013, she wrote: