Jerusalem - Addressing the swearing-in ceremony for Israel's newly-elected Knesset members, President Shimon Peres called on the parliament to try wrap up a peace treaty with the Palestinians by the end of its four-year term.

"Distinguished Arab leaders have told me that a peace accord with the Palestinians would be recognized as a regional peace agreement that includes Israel," he said.

"Peace will create a new economic reality, for us and for our neighbours. It will enable both of us to close social gaps," he told the legislators, elected on February 10 and sworn-in on Tuesday even though prime minister-designate Benjamin Netanyahu has not yet formed a governing coalition.

The president, who himself served in the Knesset from 1959 to 2007, said Israel currently faced four challenges, which he listed as concluding a peace deal with the Palestinians, giving priority to "the future of our young generation", advancing Israel to a higher scientific level, and presenting Israel as "an enlightened nation embodying a just society."

Peres tasked Netanyahu of the hardline Likud party on February 20 to form a government, after consultations revealed he had the best chance of putting together a coalition.

Although the premier-designate can likely form a government of 65 legislators from the Likud and smaller nationalist and ultra-Orthodox factions, he has said he prefers a wider, unity coalition.

But his efforts to woo into his prospective government the centrist Kadima faction and the centre-left Labour Party, have so far failed.

Peres, however, also called in his speech Tuesday for a unity government, telling the assembled legislators that during his consultations with Knesset factions "most parties voiced a clear preference for a broad national unity government" and "this is also my wish."

"The newly-elected Knesset counts 12 parties, but that does not mean that we have to be divided along those lines. The demands of the hour must unite us," he said.

Following Peres' speech, legislator Michael Eitan, who as the Knesset's most senior member was serving as acting speaker, read the oath of office: "I pledge to remain loyal to the State of Israel and to fulfil my duty in the Knesset faithfully."

Each Knesset member then stood up when his or her name was called to say simply, "I pledge."

Some 31 of the 120 legislators are first-time parliamentarians. One of them, Anastasia Michaeli, of the nationalist Yisrael Beteinu party, is the first in the history of the Knesset to become a legislator while pregnant.

Another first-timer, former television journalist Nitzan Horowitz is only the second openly-gay lawmaker to enter parliament.

Horowitz and Michaeli, along with a third legislator, Yohanan Plesner of Kadima, have to relinquish the foreign passports they hold, in accordance with Israeli law which forbids Knesset members from holding additional citizenship.

The Knesset has 21 women legislators, one of whom, Tzipi Hutabeli, enters parliament at age 30 and will be the youngest lawmaker in the House. (dpa)