Israel's parliament is sworn in

Mr Olmert's agenda will be to establish permanent borders

Israel's parliament has been sworn in following last month's elections.

The swearing-in of the 122 new Knesset members came shortly after a Palestinian suicide bomber struck in the Israeli city of Tel Aviv.

Acting Prime Minister Ehud Olmert, of the centrist Kadima Party, is still trying to put together a stable coalition government.

He has vowed to try to establish permanent borders for Israel during his four-year term of office.

This will involve giving up some of the occupied West Bank, but also holding on to a number of large areas, amid objections from Palestinians.

One big question for the new government, once it is established, will be how it deals with the new Palestinian government led by Hamas, says the BBC's Caroline Hawley in Jerusalem.

So far, Israel has broken off all official contacts and it is withholding tax payments.

But some Israeli analysts are warning that it is not in the country's interests to see an elected Palestinian government fall.