Israeli Prime Minister Benjamin Netanyahu and leader of the Kadima opposition party Shaul Mofaz, on Tuesday deemed as "historic," their decision to form a national unity government, one able to better address critical issues confronting the country.

"The state of Israel needs stability," Netanyahu told a press conference in Jerusalem. "The government's big achievements to date is the result of a tight cooperation between parts of the coalition, but foremost of political stability."

The prime minister added that "when it became clear that it's possible to form a very wide government -- the widest in Israel's history -- without going to (early) elections, I seized the opportunity."

Netanyahu praised Mofaz for his decision to join the government, saying that "together we will focus on four main issues: a fair and equal alternative to the Tal Law (which enables religious seminary students to defer mandatory military service); passing a responsible budget that will balance between the state's security, social and economic needs; changing the system of governance; and promoting a responsible peace process (with the Palestinians) which will safeguard Israel's security."

Mofaz, who had pledged to lead Israel's second round of summer social protests following his victory in Kadima's primary elections last month, said that "there are times in the life of a nation in which it is required to make significant decisions, and moments in a leader's life in which he has to take decisions with personal significance."

Noting that "forming national unity is a historic move which is important to the country's future," Mofaz added that "a coalition of 94 lawmakers will be able to better deal with the challenges facing Israel."

Mofaz emphasized that there is a clear majority in parliament and among the public for the four main issues on the national agenda: changing the system of government, which "could impact Israel's way of life; guarding Israel's identity as a sovereign, Jewish and democratic state and a territorial compromise with the Palestinians."

"These are issues that the (current) government has not been able to pass ... The prime minister was receptive to these issues, which are part of Kadima's platform," Mofaz said.

Earlier Tuesday, Netanyahu and Mofaz stunned the political system with the unity deal announcement, given less than a day after a bill to dissolve parliament in order to bring about early elections had already garnered overwhelming support -- 110 lawmakers -- in its preliminary reading Monday evening.

The deal was reached following intensive negotiations that concluded at 2 a.m. local time Monday, and brings aboard recently- elected Mofaz along with Kadima's 27 mandates, making for a massive 94-member coalition, the largest in Israel's history and one that grants Netanyahu significantly enhanced political maneuvering and support for major potential domestic and international moves.

Kadima's terms for bolting the opposition include tackling a list of largely domestic issues, including imposing military service on religious seminary students, changing the electoral system, socioeconomic reforms and steps that would enable a resumption of the stalled peace process.

Mofaz, who currently heads parliament's influential Foreign Affairs and Defense Committee, is due to become deputy prime minister and minister-without-portfolio, as well as a member of the prestigious security cabinet, according to local media.

As well, the move, which makes for three former army chiefs of staff in the security cabinet (Mofaz, also a former defense minister, joins current Defense Minister Ehud Barak and Minister for Strategic Affairs, Moshe Ya'alon) is a potent statement adding credibility both to Netanyahu's hard line on Iran -- and paradoxically -- rebuffing accusations that the government is being led by saber-rattling "messianists," a claim recently made by former Shin Bet internal security agency head Yuval Diskin.

Mofaz has already reportedly committed to supporting the Likud- let cabinet's policies until the end of its term in October 2013.

Other Kadima lawmakers are expecting to receive influential positions in parliamentary committees.

"I did not seek a (senior government) job. I wanted to be a partner (in the government)," Mofaz told reporters. "We sought this move in order to lead changes."

He added that the country's welfare, and not narrow sectional considerations, were at the heart of his party's decision to join forces with Netanyahu.

A mini-drama unfolded early on at Tuesday's press conference, when left-wing Meretz party lawmaker Nitzan Horowitz lashed out at Netanyahu during his opening remarks.

"This is a corrupt government. You're turning the Knesset ( parliament) into a joke ... This is corruption in every sense of the word. You have no shame," Horowitz angrily shouted from the audience, until Knesset security guards hauled him away.

Meretz chairwoman Zahava Gal-On earlier described the deal as " a 'mega-stinking' manuever'" initiated by a prime minister who wanted to avoid elections and a desperate opposition leader nearing a crash."

Shelly Yacimovich, leader of the Labor party, who is now due to step into Mofaz' shoes and lead the opposition, slammed the move as "an alliance of cowards, the most ridiculous zig-zag in Israel' s political history."

President Shimon Peres welcomed Kadima's inclusion in the cabinet, contending that a unity government is "good for the people of Israel" and will help the country deal with challenges.