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(July 1994), which ended the 46-year state of war between their two countries. The Jordan-Israel peace treaty was signed at the Arava border crossing (near Eilat in Israel and Akaba in Jordan) on 26 October 1994, in the presence of American President Bill Clinton. Domestic Challenges During the 1980s and 1990s, Israel absorbed over one million new immigrants, mainly from the former Soviet Union, Eastern Europe, and Ethiopia. The influx of so many new consumers, as well as a large number of skilled and unskilled workers, boosted the economy into a period of accelerated expansion. The government that came into power after the 1984 Knesset elections was made up of the two major political blocs – Labor (left/center) and Likud (right/center). It was replaced in 1988 by a Likud-led coalition, which was followed in 1992 by a coalition of Labor and smaller leftof-center parties. After the assassination of Prime Minister Yitzhak Rabin in 1995, new elections were called in 1996. In direct elections for prime minister, Binyamin Netanyahu came to power, and formed a Likud-led coalition. Less than three years later, his government was defeated. In 1999, Ehud Barak, leader of the One Israel Party (left/ center), was elected prime minister and formed a coalition government; he resigned in December 2000. Ariel Sharon, leader of the Likud, was prime minister from early 2001