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1980
The Jerusalem-Law («Jerusalem is the eternal capital of Israel») is passed as a constitution which can be changed only with a two thirds majority.
An embassy of the state of Israel is opened in Cairo.
The inflation spiral turns. The shekel becomes the new currency of Israel. This, however, doesn't break the price increases. The year ends with a rate of inflation of 131 per cent.
The retreat from the peninsula Sinai is continued.
The tensions between Jews and arabs in the Westbank grow. The mayors of Nablus and Ramallah are injured by blowing up devices which are attached by Jewish terrorists in her cars.
Shimon Peres beats his rivals Yitzhak Rabin at the candidacy for the Prime Minister Elections in the haAwoda.
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