Tzipi Livni Kadima the most seats in the Knesset, parties to the right in Israel's political spectrum gained enough seats that a coalition government under Kadima leadership was unlikely. As a result, Israeli president Shimon Peres asked Netanyahu and Likud (which received one fewer seat than Kadima in the elections) to form a government; this was the first time in Israel's history that the party with the most seats was not asked to attempt to form a government. "The New York Times" commended Livni for "refusing the extortionist conditions set by Shas," and endorsed her candidacy for prime minister, saying Israelis would
Tzipi Livni appointed Minister of Immigrant Absorption. She held this position until 2006. In 2004, Livni was appointed Minister of Housing and Construction, which she held this position until 2005. Livni was an avid supporter of Sharon's disengagement plan, and was generally considered to be among the key moderate members of the Likud party. She often mediated between various elements inside the party, and was integral to garnering government support for disengagement with the "Livni Plan". She made efforts to achieve a two-state solution to the Israeli–Palestinian conflict, including successful efforts to have the pullout from the Gaza Strip ratified by the