The twenty-first government of Israel was formed by Shimon Peres of the Alignment on 13 September 1984, following the July elections. With both the Alignment and Likud winning over 40 seats each, neither side could form a stand-alone coalition, resulting in a national unity government, together with the National Religious Party, Agudat Yisrael, Shas, Morasha, Shinui and Ometz, which together held 97 of the 120 seats in the Knesset. However, in protest at the alliance with Likud, Mapam broke away from the Alignment, as did Yossi Sarid, who joined Ratz.

The twenty-second government of Israel was formed by Yitzhak Shamir of Likud on 20 October 1986. Shamir replaced Shimon Peres of the Alignment as Prime Minister as part of a rotation deal within the national unity coalition between the two parties. The only other change to the coalition was that the one-seat Morasha faction was not included, with the National Religious Party, Agudat Yisrael, Shas, Shinui and Ometz remaining part of the government, although Shinui left on 26 May 1987.