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Jon Donnison reports from Jerusalem's main market, where he says there is "little election fever"
Israelis are voting in a general election, with Prime Minister Benjamin Netanyahu expected to be returned to office with a reduced majority.
Polls suggest Mr Netanyahu's Likud-Beitenu alliance has lost ground to a new right-wing rival, Habayit Hayehudi.
However, the ultra-nationalist party is still likely to join a coalition led by Mr Netanyahu.
First results are expected overnight, although the process of forming a government may take several weeks.
Unlike in previous elections, the parties' campaigns have focused largely on social and economic issues, rather than the prospects for a permanent peace agreement with the Palestinians.
There have been unprecedented protests against the rising cost of living and a recent report said nearly one in four Israelis lived in poverty.
At the scene
Soon after dawn at the Kol Israel Havarim High School in West Jerusalem, a trickle of Israeli voters were up early to cast their ballots. Party workers fuelled by strong coffee put up last-minute banners outside to try to sway opinion. But barring something dramatic Prime Minister Benjamin "Bibi" Netanyahu is expected to keep his job.
For some the lack of suspense has been a little boring. "This is the sleepiest election we can remember," Gil Hoffman of the Jerusalem Post told me. "Everyone knows who's going to win." One voter said this week: "Bibi is strong. No Bibi, no nothing."
Security, never far from the minds of Israelis, is seen by many as Mr Netanyahu's strong point. The economy has also been a big issue. One issue conspicuous in its absence, though, has been Middle East peace, prospects for which are currently remote.
"The non-issues are the things people care about in England," Mr Hoffman said. "Palestinians, settlements and peace - people don't care about that." And that does not bode well for those hoping for an end to the Israel- Palestinian conflict.
More than 5.65 million people are eligible to vote on Tuesday, with the 10,131 polling stations scheduled to stay open until 22:00 (20:00 GMT).
Preliminary results are expected about two hours after voting ends, while the final outcome should be known by Wednesday morning. For the first time the public will be able to follow the counting of ballots in real time on a government website.
Thirty-four parties are competing under a system of proportional representation for the 120-member Knesset. Parties must win at least 2% of the total national votes to secure seats.
The Central Elections Committee said 26.7% of Israelis had voted as of 12:00, a three percentage point rise in turnout compared with 2009 vote.
According to final opinion polls, the joint electoral list of Mr Netanyahu's Likud party and the ultra-nationalist Yisrael Beitenu party of his former foreign minister Avigdor Lieberman will win about 32 seats.
That would be 10 fewer than the two parties' combined total from the last general election in 2009 but still enough to form a coalition with other right-wing and religious groups that would have a majority of about 63.
After voting early on Tuesday at a polling station in Jerusalem alongside his wife and two sons, the prime minister told reporters: "We want Israel to succeed, we vote Likud-Beitenu... The bigger it is the more Israel will succeed."
Likud-Beitenu's right-wing dominance has been challenged by Habayit Hayehudi, led by millionaire businessman Naftali Bennett - Mr Netanyahu's former chief-of-staff.
Israeli elections
- Polls opened at 05:00 GMT; close 20:00 GMT
- 5,656,705 eligible voters
- 34 parties standing
- 120 seats contested
- parties elected by proportional representation
He has advocated annexing large parts of the occupied West Bank and rejected the idea of a two-state solution to the Israel-Palestinian conflict.
Mr Bennett said he was confident a strong result at a polling station on Tuesday, adding: "Something new is starting for the people of Israel."
Habayit Hayehudi is forecast to take up to 14 seats and become the third-largest party in the Knesset.
The second-largest party is expected to be Labour, which currently has eight seats but is predicted to make a comeback with about 17, due in large part to growing anger over the rising cost of living.
Labour's leader, Shelly Yachimovich, has ruled out joining a coalition led by Mr Netanyahu.
After casting her vote in Tel Aviv, Ms Yachimovich urged Israelis to reject Likud-Beitenu.
"This is not a dream, this can be done," she told reporters. "A few more mandates and Bibi (Benjamin Netanyahu) will not be prime minister."
The new secular centrist party, Yesh Atid (There is a Future), led by TV personality Yair Lapid, and centrist Hatnua (The Movement), led by former foreign minister Tzipi Livni, are also set to do moderately well. Both leaders have said they would consider joining a Netanyahu-led coalition.
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