In Israel's elections, Prime Minister Benjamin Netanyahu faced opposition from the "Israel One" candidate, Ehud Barak. Barak campaigned with a pledge to advance the peace process. In the election results, Barak emerged victorious over Netanyahu.

Following his election, Barak moved quickly to fulfill his campaign promises. On September 4th, 1999, he signed an agreement with the Palestine Liberation Organization (PLO), detailing further Israeli withdrawals from the West Bank. This agreement also set out a framework for final status negotiations, indicating a direction towards a potential comprehensive peace accord.

However, despite initial progress, the peace talks between the Israeli government and the Palestinians faced challenges. By the end of 2000, a second "intifada" or uprising had begun, marking a period of intensified Israeli-Palestinian conflict.

Amid this environment, and with the peace accord still out of reach, Barak's political position weakened. By early 2001, he faced another election, in which he was defeated. Ariel Sharon succeeded him as Prime Minister and went on to form a unity government in Israel.