Rabbi Shmuel Eliyahu and former IDF Chief Rabbi Brigadier General Avichai Rontzki brokered the agreement.
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According to the agreement, if Bennett wins the party leadership race, they will form a joint list which will be "nationalist, religious and traditional. The party platform will put an emphasis on education, Jewish identity, social welfare, the settlements and the political struggle over the land of Israel."
The list will include members of both parties and places on the list will be determined according to a system whereby two members from each party are placed after two members from the other party in a "crisscross" system.
The agreement states that "the joint faction will not rule out becoming a member of any coalition partnership."
Over the past few weeks, Bennett, an officer in Sayeret Matkal and former bureau chief to Prime Minister Benjamin Netanyahu, has been seeking support for his party leadership bid with a massive campaign asking people to join the ranks of the Habayit Hayehudi party in order to vote for him.
It has been estimated that his chances of winning the party leadership elections are high. Bennett said: "The agreement means that we are uniting from within and going out – to new audiences. This is an historic unity agreement, now is the time to look out towards the Jewish Zionist public in the State of Israel."
National Union Party Chairman Yaakov Katz said: "Today the National Union and the Habayit Hayehudi's future leadership, God willing, are signing an agreement." He added: "We hope to run together in the next elections, win and receive 15 mandates."
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