Amir Peretz's victory in the Labor Party reflects the collapse of the political power structure that has ruled and raised the banner of privatization of public services in Israel since 1977. The privatization process dealt a blow to the middle and lower classes, meaning most of Israeli society, however even in affluent areas the "socially conscious" Peretz beat the "diplomatic" Peres.
Hence, most of the population is more concerned about the social and economic facet than about the political aspect. The Labor Party has slipped into a state of atrophy, which is manifest in the decline in its number of seats, as a result of its support of the privatization process. The social-democratic explosion generated by Amir Peretz has saved the party from disintegrating – and it is also the key to its return to the helm of national leadership, representing a coalition of interests of the majority of Israeli society.
