Founded by Ariel Sharon in 1977 prior to elections that year, it merged into Likud immediately after the Knesset term began.

However, he was instrumental in establishing Likud in July 1973 by uniting most of the right-wing parties in the country; Gahal, the Free Centre, the National List and the Movement for Greater Israel.

From June 1975 to March 1976, Sharon was a special aide to Alignment Prime Minister Yitzhak Rabin.

He suggested to Simkha Erlikh, who headed the Liberal Party bloc in the Likud, that he was more fitting than Begin to win an election victory, but he was rejected.

However, the party ceased to exist when it merged into Likud on 5 July 1977, and Sharon was made Minister of Agriculture.