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Israel

Netanyahu finalizes fragile 61-MK coalition

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At nearly the last hour, Israeli prime minister Benjamin Netanyahu finalized the smallest possible coalition possible.ISrel Flag Icon

After Netanyahu’s foreign minister Avigdor Lieberman resigned on Monday and announced that his Russian-interest, secular nationalist Yisrael Beiteinu (ישראל ביתנו‎, ‘Israel is Our Home’) would head into opposition, it left the prime minister scrambling to build a government with a Wednesday night deadline looming.

Having secured agreements with Moshe Kahlon’s center-right Kulanu (כולנו‎, ‘All of Us’) and with two ultraorthodox parties, it left Netanyahu and his center-right Likud (הַלִּכּוּד‎) dependent on the final right-wing party, Bayit Yehudi (הבית היהודי, ‘The Jewish Home’) to form a working coalition. Kahlon, a former Likud communications minister, will serve as the government’s finance minister, is particularly concerned with policies to reduce inequality and rising domestic prices.

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RELATED: Lieberman resignation rocks Israeli coalition talks

RELATED: Israeli election results —
eight things we know after Tuesday’s vote

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With just eight seats (four fewer than in the previous Knesset) and hard feelings between Netanyahu and the Bayit Yehudi leader, Naftali Bennett, Lieberman’s decision suddenly gave Bennett much more negotiating power. Without Bennett, Netanyahu would not have a majority; Israel’s president Reuven Rivlin could thereupon turn to the leader of the opposition, Isaac Herzog, to seek an alternative government coalition.

The result was a poisonous 48 hours of negotiation between the Netanyahu and Bennett camps, with Bennett angling to win the all-important justice ministry for Ayelet Shaked and, perhaps, improving his own ministerial portfolio from education to the foreign ministry. With Likud’s ranks already grumbling about handing over the education ministry to Bennett, Netanyahu’s allies were downright furious — and embarrassed — to cave to Bennett on the justice ministry. It’s an important post because it will allow Bayit Yehudi to demand changes to the Israeli supreme court and it will give Bayit Yehudi the power to shape the appointment of Israel’s next attorney general.

Bennett, who served as Netanyahu’s chief of staff briefly in the 2000s, headed a pro-settler organization in the West Bank before assuming Bayit Yehudi’s leadership in 2013. The religious, right-wing Zionist party is in favor of greater settlements, and Netanyahu’s lurch rightward during the election campaign was designed to steal its voters to Likud’s ranks — a gambit that seemed to work.

In Netanyahu’s previous government, Bennett served as economy minister, though he enhanced his profile during the Israeli offensive in the Gaza strip in the summer of 2014, criticizing Netanyahu for not taking even stronger action to thwart Hamas.

The deal salvages Netanyahu’s third term as prime minister, but it comes at a huge cost. With just 61 MKs, Netanyahu can be held hostage in the future over any piece of legislation or government action by a single member of his own coalition. Just a couple of rebels could conceivably bring the government down, which could force a new government or fresh elections. After such contentious negotiations, moreover, trust between Netanyahu and Bennett, never strong, is at a nadir. Likud officials are already telling the Israeli media that they’ll seek ‘revenge’ for Bennett’s ‘extortions.’

To make matters worse, Bayit Yehudi is not entirely united behind Bennett’s leadership, and members of the even-harder-right ‘Tekuma’ faction were demanding that their leader, Uri Ariel, be given the justice portfolio instead of Shaked. For now, however, Ariel seems to be happy with the agricultural ministry.

Netanyahu still has another week to win a formal vote of confidence from the 120-member Knesset. But Netanyahu’s first task will start immediately — to build out his existing coalition on an ASAP basis so as to reduce the possibility of political blackmail or even to push Bayit Yehudi out of government altogether.

The most tantalizing option would be for Netanyahu to convince Herzog to form a ‘national unity’ government with the Zionist Union (המחנה הציוני‎), a coalition between the center-left Labor Party (מפלגת העבודה הישראלית) and a bloc of moderates led by former justice minister Tzipi Livni.

For now, Herzog has been adamant that he will not join any government headed by Netanyahu, and he was quick to criticize the instability of Netanyahu’s latest coalition:

Herzog criticized Netanyahu’s newly formed government shortly after it was announced Wednesday night, saying in a statement that the 61-seat coalition “lacks responsibility, stability and governance.” He called it a “national disaster of a government. A weak and narrow government, susceptible to blackmail, that will advance nothing and will quickly be replaced by a responsible and hopeful alternative.”

Netanyahu purposefully held open the foreign ministry position with an eye to convincing Herzog to join a national unity government.

But if Herzog cannot be convinced to do so within the months ahead, Netanyahu might try to split off a handful of Labor hawks or the faction loyal to Livni, who most recently served as Netanyahu’s justice minister between 2013 and 2015.

Netanyahu’s former finance minister, Yair Lapid, is adamant that he will not return to an alliance with Likud, especially after Netanyahu agreed to the ultraorthodox parties’ request to revisit the crackdown on exemptions from military service for religious students. But that doesn’t mean Netanyahu can’t try to poach several members of Lapid’s centrist Yesh Atid (יש עתיד, ‘There is a Future’).

His final option, and perhaps the easiest of all, is to find a way to soothe his onetime ally Lieberman’s concerns and bring Yisrael Beitenu back into government.

Israel

Lieberman resignation rocks Israeli coalition talks

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Foreign minister Avigdor Lieberman was once so close to Israeli prime minister Benjamin Netanyahu that the two political leaders joined forces to fight the 2013 elections on a joint ticket. When Lieberman stepped down as foreign minister in 2012 pending resolution of charges of fraud and breach of public trust, Netanyahu held the foreign affairs portfolio himself, with every intention of re-appointing Lieberman to the position when Lieberman was subsequently cleared of the corruption-related charges.ISrel Flag Icon

That makes it all the more spectacular that Lieberman announced Monday that he was resigning his office and that his party, the secular nationalist Yisrael Beiteinu (ישראל ביתנו‎, ‘Israel is Our Home’), would not be joining Netanyahu’s next governing coalition, throwing the prime minister’s plans for a third consecutive term into disarray.

With 48 hours to go before Netanyahu has to assemble a government, he now has to deal with the loss of six seats that have reduced his expected coalition to a bare majority of 61 of the Knesset’s 120 seats — not to mention a sudden fight to replace Lieberman as foreign minister. Netanyahu’s decision, rushed though it may be, will set the tone for Israel’s troubled relations with the United States and with Europe. Moreover, without Yisrael Beitenu, Netanyahu’s government could collapse on the whim of a single MK, including hard-line allies on the Israeli right.

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RELATED: Netanyahu set for six-party, right-wing coalition

RELATED: Israeli election results —
eight things we know after Tuesday’s vote

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That’s renewed the growing speculation that Netanyahu might be forced, either now or in coming months, to seek a national unity government with the largest opposition party, the Zionist Union (המחנה הציוני‎), a coalition between the center-left Labor Party (מפלגת העבודה הישראלית) and a bloc of moderates led by former justice minister Tzipi Livni. The Zionist Union’s leader Isaac Herzog reiterated his refusal, however, to join a Netanyahu coalition. Though Netanyahu won a two-week extension to form a government from Israeli president Reuven Rivlin in late April, Herzog will likely have his chance to form a government if Netanyahu fails to do so before the May 7 deadline.

Lieberman, for what it’s worth, blamed Netanyahu’s concessions to the haredi parties that seek the repeal of laws passed by secular lawmakers in the prior government to reduce military exemptions for ultraorthodox students and liberalize marriage laws, which made official Jewish weddings much easier for Russian immigrants who vote for Yisrael Beitenu. Lieberman also challenged Netanyahu’s toughness on Gaza, and he bemoaned the way that Netanyahu and allies abandoned a controversial bill to proclaim Israel a ‘Jewish state.’ Many commentators in Israel were quick to ascribe more cynical motives to Lieberman, who had once harbored dreams of succeeding Netanyahu as prime minister, and Likud officials vented their fury with Lieberman. Continue reading Lieberman resignation rocks Israeli coalition talks →

Israel

Netanyahu set for six-party, right-wing coalition

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bibikahlonPhoto credit to Marc Israel Sellem / Jerusalem Post.

After Israeli president Reuven Rivlin finished talks with all of the country’s parliamentary parties on Monday, Israeli prime minister Benjamin Netanyahu was set to amass a governing majority in a six-party coalition that will easily prove more right-wing than either of Netanyahu’s governments following the 2009 and 2013 elections.ISrel Flag Icon

While coalition talks are not likely to begin until Wednesday, when Rivlin formally asks Netanyahu to begin negotiations, the contours for the next government seem clear.

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RELATED: Eight things we know after Tuesday’s Israeli election results

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It’s worth taking a moment to state just how right-wing the ‘Netanyahu IV’ government will be.

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In 2009, when Netanyahu returned to the premiership after a decade-long stint in the wilderness, his coalition included a former center-left prime minister, Ehud Barak, and the other traditional Israeli party, the Labor Party (מפלגת העבודה הישראלית).

In 2013, after a long round of negotiation talks, Netanyahu ditched the ultraorthodox haredi parties in favor of two moderates — Tzipi Livni, a centrist and former foreign minister and Yair Lapid, the leader of the secular centrist Yesh Atid (יש עתיד). Lapid, who would serve for two years as finance minister, demanded that Netanyahu eschew the haredi parties, especially in light of a contentious debate about the exemption of haredim from the Israeli Defense Forces.

Today, however, Netanyahu is set not only to welcome those ultraorthodox parties back into government, but to exclude Labor, Yesh Atid and any other real centrists. For all the hand-wringing among Israeli allies, most especially the United States, over the past six years of Netanyahu’s dominance, Netanyahu’s third consecutive term will be something like ‘Netanyahu squared.’

Lapid, Livni and the Labor Party leader Isaac Herzog have all ruled out joining a Netanyahu government, to the dismay of centrists (including, allegedly, Rivlin) who would prefer a more balanced government with a ‘national unity’ flavor.

The six parties aren’t firmly set yet, but all of them, representing 67 members of Israel’s unicameral, 120-member parliament, the Knesset (הַכְּנֶסֶת), recommended Netanyahu as the new prime minister and, accordingly, all six are expected to take part in the next Netanyahu government: Continue reading Netanyahu set for six-party, right-wing coalition →

Israel

The definitive chart to deciphering Israel’s coalition negotiations

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No matter who wins Israel’s election tomorrow, no party is expected to win more than a fragment of the seats necessary to win a majority in Israel’s unicameral 120-member parliament, the Knesset (הַכְּנֶסֶת).ISrel Flag Icon

That means that for days and, likely, weeks after the voting ends, Israel will be caught up in the battle to form a new governing coalition. That process will begin as soon as Tuesday, when Israel’s president Reuven Rivlin begins talking to party leaders to assess who should have the first shot at forming a coalition.

That individual, whether it is current prime minister Benjamin Netanyahu or Labor Party leader Isaac Herzog, will then have 42 days to build a government that can win at least a 61-vote majority in the Knesset.

The bottom line is that Israel and the world could be waiting a long time for a new government, though Rivlin is said to be anxious to speed the process along. That, in part, will depend on Israel’s many parties.

Rivlin, previously the speaker of the Knesset and, until his presidential election last year, a member of the center-right Likud, will have some discretion in naming a prime ministerial candidate, but it will almost certainly be the leader whose party wins the most votes in Tuesday’s election (unless a clear majority of other party leaders, over the course of presidential talks, support the second-place winner to lead the next government).

So how to keep track of the various coalition possibilities?

Suffragio‘s guide to the Israeli political parties and each party’s compatibility with every other party, as determined on a subjective scale of four degrees. Here’s what each of the colors mean: Continue reading The definitive chart to deciphering Israel’s coalition negotiations →

Israel, United States

The real reason Netanyahu is coming to Washington

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netanyahucongressPhoto credit to AFP.

Washington, it’s not always about you. USflagISrel Flag Icon

For a week, US House speaker John Boehner’s decision to invite Israeli prime minister Benjamin Netanyahu to address a joint session of the US Congress has stirred controversy in the capitals of both countries, but especially in Washington, where commentators of all political stripes are attacking the veteran Israeli leader for the breathtaking breach of protocol in bypassing the administration of US president Barack Obama and dealing exclusively with Obama’s political opponents in the legislative branch. The Atlantic‘s Jeffrey Goldberg, perhaps the leading US commentator on Israeli affairs and the bilateral relationship, slammed the move in a piece on Tuesday headlined, ‘The Netanyahu disaster.’

Yes, Netanyahu wants to stop Iran from becoming a nuclear power, and he’s made it clear that he will stop at nothing to thwart Tehran from enriching even the tiniest bit of uranium in its quest to develop its nuclear energy industry — to say nothing of a nuclear-armed Iran.

Yes, Netanyahu is a political foe of the Obama administration and, time after time, he’s gone out of his way to indicate his disapproval of its approach to Iran and other issues central to Israeli regional security. Netanyahu has increasingly developed common cause with the US right, and he has a fervent supporter in Sheldon Adelson, one of the wealthiest Republican donors in the United States (he almost single-handedly bankrolled former speaker Newt Gingrich’s 2012 presidential bid) and a top Netanyahu financier in his own right.

But neither of those are the real reason that Netanyahu is so eager to speak before the US Congress, now entirely controlled by the Republican Party. Nor will Netanyahu be dissuaded by arguments that it’s a fantastic breach of protocol that will make an already tense relationship with the Obama administration worse. After all, Netanyahu practically endorsed Mitt Romney, Obama’s Republican challenger for the presidency in 2012, and he easily won his own battle for a new term as Israeli prime minister two months after the American presidential election. The potential of alienating a sitting US president certainly didn’t harm Netanyahu’s own domestic political prospects two years ago. The fact that Netanyahu is one of the few US allies who so often publicly contradicts the US president might even boost his standing among Israeli voters.

The real impetus for Netanyahu?

His scheduled appearance comes just two weeks before he faces what will be his toughest election battle since 1999, when he lost an election to Ehud Barak, then the leader of the Labor Party (מפלגת העבודה הישראלית).  Continue reading The real reason Netanyahu is coming to Washington →

Israel

Four things that the Netanyahu-Livni deal tells us about Israel’s next government

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With word that Tzipi Livni, former foreign minister and leader of Hatnuah (התנועה, ‘The Movement’), will become the first major figure to join prime minister Benjamin Netanyahu’s governing coalition for a third term in office, nearly a month after Israel’s legislative elections, we’ve reached a new critical phase of the coalition-building process.ISrel Flag Icon

Livni will not only serve as justice minister in the new government, according to the agreement with Netanyahu, but will also be the government’s exclusive negotiator for any peace talks with the Palestinians.  Her party, Hatnuah, will also receive another cabinet position, most likely environmental protection.

Netanyahu has until mid-March to form a government, six weeks from the date when Israeli president Shimon Peres invited him to form a coalition.  Although Netanyahu may be granted a 14-day extension, the pressure is now on to form a broad-based government, even though Netanyahu’s own Likud (הַלִּכּוּד‎, ‘The Consolidation’) holds just 20 seats in the Knesset (הכנסת), Israel’s 120-member unicameral parliament.

With his electoral coalition partners, the secular nationalist Yisrael Beiteinu (ישראל ביתנו‎, ‘Israel is Our Home’) of former foreign minister Avigdor Lieberman, ‘Likud-Beiteinu’ holds 31 seats, so even the merged coalition is likely to be a minority within the larger governing coalition.

Hatnuah, which includes Amir Peretz, former leader of the Labor Party (מפלגת העבודה הישראלית), and defense minister from 2006 to 2007, and Amram Mitzna, also briefly a former leader of Labor (from 2002 to 2003) and former mayor of Haifa, won only six seats in the election, so Netanyahu has a long way to go. But by bringing Hatnuah into the fold, and by giving it two portfolios,‡ Netanyahu is signaling that it’s more important to have Livni within government than outside it.

It’s somewhat surprising to see Hatnuah become the first party to join forces with Netanyahu after January’s elections, given Livni’s steadfast opposition to joining a Netanyahu-led coalition four years ago.

Livni led the centrist Kadima (קדימה, ‘Forward’) in the previous 2009 elections, and she managed to win 28 seats to just 27 for Likud.  Livni, however, couldn’t find enough partners to form a coalition and when she refused to join Netanyahu’s coalition, Netanyahu found more willing allies in Lieberman and former prime minister Ehud Barak, then the leader of Labor.

Kadima, in opposition for three years and declining in the polls, dumped Livni as leader in March 2012.  She promptly resigned from the Knesset, only to return to politics in advance of the 2013 elections with her new party, Hatnuah.

So where does the Netanyahu coalition go from here?

Here are four things that the Livni-Netanyahu alliance signals to us about the next Israeli government: Continue reading Four things that the Netanyahu-Livni deal tells us about Israel’s next government →

Israel

The Netanyahu-Bennett relationship will define the next Israeli government

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It’s virtually certain that Benjamin Netanyahu will remain Israeli prime minister after the January 22 elections.

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But what remains unknown is whether he’ll pivot to the center or to the right in order to build the coalition he’ll need to command an absolute majority of Israel’s parliament, the Knesset (הכנסת).

One of the most important factors — if not the key factor — that will determine the composition of Netanyahu’s coalition is the state of the personal relationship between just two men — Netanyahu and his former chief of staff, Naftali Bennett, who as the rising star and leader of the stridently conservative Bayit Yehudi (הבית היהודי, ‘The Jewish Home’), is expected to win between 12 and 16 seats after Tuesday’s elections, according to polls.

The rise of Bayit Yehudi, a religious Zionist party that’s even more pro-settlement than Netanyahu and which opposes the two-state solution and, has been the most dominant storyline of the 2013 elections, with Bennett heralded as a rising star of Israeli politics and, in particular, the rise of religious Zionism.

At the outset of the election campaign, Netanyahu merged his Likud party (הַלִּכּוּד‎, ‘The Consolidation’) with the secular nationalist Yisrael Beiteinu (ישראל ביתנו‎, ‘Israel is Our Home’), led by former foreign minister Avigdor Lieberman.  But Lieberman’s resignation, stemming from an indictment on breach of public trust charges, has led to a more subdued campaign, and Netanyahu has watched as polls show the combined ‘Likud-Beiteinu’ coalition fall from its current 42 seats in the Knesset, Israeli’s unicameral parliament, to somewhere between 32 and 34.

Enter Bayut Yehudi, to Likud’s right — polls show that Lieberman’s troubles and Likud Beiteinu’s losses have all been to the benefit of Bayit Yehudi.

Although Bayit Yehudi, with its three seats in the outgoing Knesset, is a member of Netanyahu’s current coalition, Bennett has a complicated relationship with Netanyahu, to say the least.  Both Netanyahu’s camp and Bennett’s camp agree that Bennett left as Netanyahu’s chief of staff on less than optimal terms.

Throughout the campaign, Netanyahu has reserved his harshest criticism for Bennett — in comparison, he’s been relatively tame in going after other party leaders, including Tzipi Livni and Yair Lapid, who he may turn to as potential coalition partners.

Haaretz details the Netanyahu-Bennett relationship in a story this weekend (read it all), noting not only the tension between Bennett and longtime Likud advisers, but also between Bennett and the prime minister’s wife, Sara.  The article highlights the disappointment that Netanyahu felt over Bennett’s performance as chief of staff:

Bennett left after a lengthy period of tension with the boss. At least four sources who worked with Netanyahu at the time noted that he was not satisfied with Bennett’s performance, and felt that he “was not delivering the goods.”

Netanyahu’s confidants maintain that it was Bennett who put out the story that he left because of his poor relations with Sara Netanyahu. According to these sources, “Sara didn’t like him, but she didn’t fire him. That was an excuse that was invented in retrospect.” They add that after leaving the bureau Bennett was behind various leaks against Netanyahu, but that nowadays he tells everyone that relations between them were excellent.

Has Netanyahu already decided there’s no room for Bennett in his government?  Has he decided that it’s safer politically to keep Bennett in check inside government rather than allow him to remain in opposition?  No one knows the answer to that, and we won’t until we see the ultimate composition of Netanyahu’s next coalition.

On the one hand, the MKs likely to be elected under the Likud-Beiteinu ticket are even more right-wing than its current caucus, so there’s a logical natural affinity for a coalition between them and Bayit Yehudi.  Bennett has openly stated that he hopes and intends that Bayit Yehudi will be part of any center-right coalition.  He’s shrewdly argued that a vote for Bayit Yehudi is really also a vote for a Likud-led center-right government: vote for us, and we’ll make sure we keep Netanyahu’s government firmly on the right path.

His pitch, according to polls, has attracted even secular voters, who are attracted to his firm stance against a two-state solution — Netanyahu in June 2009 came out tentatively in support of the two-state solution for the first time in his career.

But if Netanyahu returns to government with the support of an even more conservative coalition, it’s likely to make already-tense relationships with the international community, including U.S. president Barack Obama, even more difficult.  The last thing Netanyahu wants over the next four years is further estrangement from his global allies at a time when he’ll need as much U.S., European and international goodwill as he can get on any number of issues, from the rise of Islamist rule in Egypt to Palestinian negotiations to dealing with Iran’s nuclear weapons program.

Beyond those considerations, of course, are the very intimate personal dynamics between Netanyahu and Bennett, and those dynamics remain uncertain.

What’s certain is the tenacity of the Likud attacks on Bayit Yehudi — earlier this week, Likud attacked Bennett for misleading advertisements (shown below), and Israel’s Central Elections Committee agreed, ruling that Bayit Yehudi must remove them.  The ads show Bennett and Netanyahu together, shrewdly linking the notion that a vote for Bayit Yehudi is a vote for a broad Zionist right-wing coalition led by Netanyahu.

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Likud’s leadership was none too pleased, and the bad feeling Bennett has engendered may inhibit the role Bayit Yehudi could play in any future government.  Continue reading The Netanyahu-Bennett relationship will define the next Israeli government →

Israel

Fiscal, budget issues loom large in Israeli election

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Shelly Yacimovich took over Israel’s Labor Party (מפלגת העבודה הישראלית) in 2011 with a clear message — she would focus on Israeli economic policy, wagering that Israeli voters would welcome a message that has more to do with jobs than jihad, that emphasize incomes over Iran. ISrel Flag Icon

After all, many elections have been won on the maxim of ‘it’s the economy, stupid,’ so it’s not necessarily a bad strategy.

Nonetheless, the conventional wisdom is that Yacimovich’s wager hasn’t worked out, with Labor forecast to win just 17 seats in the latest Haaretz poll in advance of Tuesday’s elections for control of the Knesset (הכנסת), Israel’s 120-seat unicameral parliament, despite the ridiculous fragmentation of the center-left among five parties.

But Labor remains by far in the strongest position among the five center-left parties competing in Tuesday’s election, and given that Labor currently holds just 13 seats in the Knesset, it’s actually somewhat of a triumph.

The prevailing narrative in the campaign so far has been the rise of the very conservative Bayit Yehudi (הבית היהודי, ‘The Jewish Home’) and its leader, Naftali Bennett, who unrepentantly supports new settlements and unrepentantly opposes a two-state solution, and who parted ways with Netanyahu in 2008 after previously serving as his chief of staff.

But there’s a strong case to be made that the elections will be a turning point for the Israeli left.

In the latest Haaretz poll, 47% of voters believe that Israel’s socioeconomic position is the most important issue — in contrast, just 18% cited the Palestinian negotiations, 12% cited exceptions for ultraorthodox haredim to serve in the Israeli Defense Force, and 10% cited the Iranian nuclear weapons program.  Meretz (מרצ, ‘Energy’), an even more socially progressive party on the Zionist left, would win six seats, doubling its current representation in the Knesset.

When she became leader in 2011, social justice protestors were agitating throughout Israel over rising costs, income inequality and the stability of public spending on health and education.

Labor’s platform calls for a new 5% estate tax on estates of more than around $4 million (15 million new shekels) and the reintroduction of import duties previously cancelled by the government of current prime minister Benjamin Netanyahu.  Those revenues would finance additional funding for health care, education and housing assistance, as well as raising the minimum wage.

Upon assuming the Labor leadership, Yacimovich (pictured above with Israeli president Shimon Peres) was also trying to distinguish herself from her predecessor, Ehud Barak, the former prime minister who left the party in 2011 to continue as Netanyahu’s defense minister.  Barak announced late in 2012 that he would not stand for reelection to the Knesset and, while there’s a chance Netanyahu may ask him to return to the defense ministry from outside the Knesset, it seems equally likely that Barak could become the next Israeli ambassador to the United States.

Traditionally a dovish party, Labor nonetheless joined Netanyahu’s government following the 2009 elections, and Barak, who had served under former prime minister Ehud Olmert as defense secretary since 2007, continued in that role for Netanyahu.  Unlike Barak, who had a storied career as a leading general in the IDF, Yacimovich was a television journalist before moving into politics.

But though polls show a fairly predictable result on January 22, the real question is whether Netanyahu will pivot to the center or to the right in order to build his governing coalition, and that decision will have perhaps even greater consequences for economic policy than even security policy.

The current snap elections are happening in January, and not later this year, because of the Knesset’s failure to agree to a budget, and so the most pressing issue before the next government — barring any regional security crisis or a surprise military action in Iran or the Gaza Strip– will be Israel’s fiscal situation.

Just last week, the Israeli government announced that its budget deficit would be 4% of GDP, nearly twice as high as expected than expected, so the next government will be under incredible pressure to cut spending or even raise taxes, although Netanyahu’s finance minister Yuval Steinitz has ruled out any new taxes, though education minister Gideon Sa’ar is tipped to replace Steinitz in any new government.

The fiscal discussion will come at a time when Israeli growth is stalling.  Although the Israeli economy’s GDP growth estimate for 2012 has edged up to 3.3% from 2.7%, it’s less than the country’s 4.5% growth in 2011 and a trend of the past decade of around 4% to 5% growth.

The Israeli economy is expected to grow this year by an estimated 2.5% or 3%, also well below trend, although newly discovered natural gas deposits could boost the economy by up to 1% of GDP.  Moreover, the factors that motivated the 2011 social protests in Israel haven’t disappeared in the meanwhile.

So Yacimovich is right.  It really is the economy. Stupid. Continue reading Fiscal, budget issues loom large in Israeli election →

Israel

Lieberman resignation complicates Netanyahu coalition’s election chances

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avigdor

That Israel’s hard-line foreign minister Avigdor Lieberman will resign following indictments Thursday for breach of trust doesn’t mean he’s leaving politics.

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To the contrary, Lieberman’s move seems calculated to allow him to return to the forefront of Israel’s coalition government, headed by Benjamin Netanyahu, upon the strong likelihood that Netanyahu emerges from upcoming elections as prime minister.  Given that Israel’s essentially in campaign season, Lieberman (pictured above) is moving aggressively — and wisely, probably — to lift his parliamentary immunity in order to bring investigations to resolution as fast as possible about the charges that remain.

Those charges, by the way, are only derivative of the main charges against Lieberman that stem from a 12-year investigation with respect to money laundering and fraud — Lieberman stood accused of receiving millions from international businessmen while he was serving in office.  Israel’s attorney general Yehuda Weinstein determined not to pursue charges against him on those accusations.  The remaining charge is that Lieberman breached public trust by appointing Ze’ev Ben Aryeh as ambassador to Belarus without disclosing that Ben Aryeh had alerted Lieberman that he was being investigated by Belorussian authorities.  So all things considered, Thursday was somewhat of a victory for Lieberman in that it lifted a decade-long shadow from his public life.

Netanyahu is holding Lieberman’s portfolio ‘in trust’ and will serve simultaneously as prime minister and foreign minister until the January 22 elections for the Knesset (הכנסת), Israel’s 120-seat unicameral parliament.

In advance of the election, Netanyahu had teamed up with Lieberman to merge Israel’s longstanding center-right party Likud (הַלִּכּוּד‎, ‘The Consolidation’) with Lieberman’s Yisrael Beiteinu (ישראל ביתנו‎, ‘Israel is Our Home’).  At the last election, Yisrael Beiteinu, with a strongly nationalist secular profile that appeals to many of Israel’s ethnic Russian Jewish population, won 15 seats to 27 for Likud, and 28 for the more centrist — and now-imploding — Kadima (קדימה, Forward).  The coalition between Netanyahu and Lieberman has remained the core of Israel’s government since 2009, and their combined ‘Likud Beiteinu’ ticket ensures that Lieberman and his allies will take at least 15 seats if the coalition retains its combined 42 Knesset seats.

The news threatens to sidetrack Lieberman less than a month after Netanyahu’s defense minister and former prime minister Ehud Barak said he wouldn’t stand for election in the Knesset, just two years after leaving Israel’s longstanding center-left party, Labor (מפלגת העבודה הישראלית) to found his own breakaway party, ‘Independence’ (סיעת העצמאות).  Netanyahu could still, however, re-appoint Barak as a non-MK defense minister after the election.

But despite the conventional wisdom that Netanyahu will easily glide to reelection, things are looking decidedly less secure for him in the wake of a number of disappointments for his government — Netanyahu was widely seen to have publicly challenged U.S. president Barack Obama over Iran and also to have favored Republican candidate Mitt Romney in the U.S. presidential election, so Obama’s reelection was widely seen as a setback for Netanyahu.

Furthermore, the eight-day bombing campaign in Gaza in November, the United Nations vote on Nov. 30 to recognize Palestine as a non-member observer state and the Israeli announcement of further settlements in the West Bank have called into question Netanyahu’s sincerity on achieving Israeli-Palestinian peace, but his diplomatic abilities as well, given Israel’s increasingly negative image in the world.  Those defeats came after Netanyahu’s cartoonish Cassandra siren demanding ‘red lines’ with regard to Iran’s alleged nuclear weapons program.

Those troubles are borne out in a poll released today — conducted before Lieberman’s resignation — that finds ‘Likud Beiteinu’ would win just 37 seats in the election, a bit of a retreat from their current 42 seats.  In the poll, 54% of Israeli voters say that Israel’s diplomatic position has gotten worse in the past four years, at a time when Israeli diplomacy will remain vital throughout the Middle East in 2013 and beyond — on Egypt, on Palestine, on Syria and Lebanon and on Iran.

But Likud Beiteinu’s loss — so far — has not meant a gain for the forces of Israel’s horribly fractured center-left.  Instead, the even more stridently Zionist, conservative Bayit Yehudi (הבית היהודי, ‘The Jewish Home’) would win 16 seats, up from just three in the current Knesset.

That party — or rather coalition of parties — is led by Naftali Bennett, who served as Netanyahu’s chief of staff in opposition from 2006 to 2008, and it has been a component, albeit a small component, of Netanyahu’s coalition, and could be expected to join future Netanyahu-led coalitions as well.  Bennett is rapidly becoming a rising star in Israel, and he’ll be headed for a major cabinet post if he places third — or higher — in January’s elections.  Bennett, born to American parents and a former New York City resident, founded and sold a company in his 20s to become independently wealthy before returning to Israel, serving in the Israeli Defense Force during the short-lived 2006 war in Lebanon and then in politics as Netanyahu’s chief of staff.

For now, then, while Lieberman’s troubles could result in harming Lieberman’s reputation, it shouldn’t affect Netanyahu’s position to remain prime minister — though a stronger Jewish Home bloc in the Knesset would arguably make a future Netanyahu government more Zionist in nature and less secular.

The poll showed that the center-left, currently fragmented among three major groups, would win just 36 seats total, meaning that, even if a world where the three parties could unite somehow, they still don’t command enough support to form a government:  Continue reading Lieberman resignation complicates Netanyahu coalition’s election chances →

Israel, Palestine

Today’s attack in Gaza and its effect on Israeli (and Middle Eastern) politics

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First and foremost, it bears noting that civilians — including women and children — died today in Israel’s air strikes on Gaza and, whatever the merits, motivations or repercussions of that attack, our hearts — Jewish, Muslim, Christian, agnostic or otherwise — should cry for the loss of innocents in any military operation.

One of the motivating factors of my blog is to demonstrate that in so many places in the world, with so many viewpoints and cultural assumptions and worldviews, politics is a way of brokering policy decisions in a way that avoids violence — even in countries without democratic institutions or even much in the way of rule of law. 

So from that perspective, even if you think the world is a better place without Hamas’s Ahmed Jabari, who was killed in Israel’s attack today, it’s incredibly sad to see the continued failure of politics vis-a-vis Israel and Hamas in the Gaza Strip.

* * * * *

I have no interest in assigning blame in a conflict where both sides have used too much violence for far too long, despite strong and honestly held beliefs, and I have no idea how today’s Israeli attack on Gaza will play out (but I have a sad hunch), but it’s safe to say that with just over two months to go until Israel’s election campaign, it’s suspicious to see this kind of a wide attack on Gaza, the worst of its kind since Israel entered the Gaza Strip four years ago.

Even giving Israeli prime minister Benjamin Netanyahu the benefit of the doubt, today’s attack is bound to affect the election, scheduled for January 22.

Certainly, it helps Netanyahu’s reelection campaign, and it does so at a critical time when former Kadima leader Tzipi Livni and former prime minister Ehud Olmert were set to make a final decision about whether they would participate in the January 22 elections for the Knesset, Israeli’s unicameral parliament, and at a time when his Likud (הַלִּכּוּד‎) party’s formal 2013 election coalition with Yisrael Beitenu (ישראל ביתנו‎) has resulted in the jointly-merged coalition losing strength, not gaining.  As individual parties a month ago, they polled 40% to 45% cumulatively; the most recent poll shows Likud-Yisrael Beitenu at 36%, with their main rivals gaining — the Labor Party (מפלגת העבודה הישראלית‎) under Shelly Yachimovich polling 21%, and a new political party, Yesh Atid (יש עתיד‎) under popular former broadcaster Yair Lapid polling 15%.

We don’t know what exactly it means for Mohammed Morsi, the newly elected president of Egypt, only consolidating the reins of power in the Arab world’s largest country.  But Egypt has already recalled its ambassador from Tel Aviv, and Morsi’s aides are working to revise the 1979 peace treaty with Israel.  Morsi was the Muslim Brotherhood’s candidate during the presidential campaign.

The attack also puts the United States — and president Barack Obama, just eight days after his reelection — in a tougher spot than it would prefer.  Can you imagine what a Camp David-like peace accord would look like today, with Netanyahu on one side, Morsi on the other, who knows who would represent Hamas, and Obama and U.S. secretary of state Hillary Clinton trying to sort it all?

As Jeffrey Goldberg notes in real time in his blog at The Atlantic: Continue reading Today’s attack in Gaza and its effect on Israeli (and Middle Eastern) politics →

Israel

Netanyahu announces early elections in Israel

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Israeli prime minister Benjamin Netanyahu yesterday announced that he would call early elections for Israel’s unicameral legislature, the Knesset:

In a televised statement, Netanyahu said  that, as his coalition government would not be able to agree on a national budget for 2013, he had “decided, for the benefit of Israel, to hold elections now and as quickly as possible.”

The elections would take place within three months, the prime minister said.

“In a few months, the tenure of the most stable government in decades will come to an end,” Netanyahu said. “This stability has helped us achieve the two main objectives we promised the citizens of Israel – to strengthen security at a time when a dangerous upheaval is gripping the Middle East, and [to fortify] the economy during…a  financial turmoil.”

In calling for elections “as soon as possible,” which can be held a minimum of three months after the dismissal of the Knesset, Netanyahu appeared to be targeting as soon as January 15 , but the election could be held in February as well.  The Knesset is expected to be dismissed as soon as possible, ostensibly over the budget, but really as much because Netanyahu believes he’s in as good a position as he’ll be between now and October 2013, the last possible date elections could be held.

So where does the race stand today?

Nearly everyone expects today that Netanyahu’s conservative Likud (הַלִּכּוּד‎) party will win the greatest number of seats in the upcoming election and thereupon form a coalition (with any number of parties from the left, center or right and from both the secular and religious parties), extending Netanyahu’s grip on Israeli power at a time when the possibility of a nuclear-armed Iran in the future seems more likely than not.

Speaking of Iran, the race could well feature Iran and U.S.-Israeli relations as a top issue.  In any event, the Israeli election will follow the U.S. presidential election.  Netanyahu has recently been making an incredibly high-profile case for U.S. president Barack Obama to set ‘red lines’ over Iran’s nuclear program — ‘red lines’ that, if crossed, would trigger a military response from the United States and/or Israel.  Although Obama’s challenger in the U.S. race, Republican Mitt Romney, has argued for an even more hawkish foreign policy on Iran, Netanyahu has been criticised by both U.S. and Israeli politicians for trying to influence the U.S. election.  By the time the Israeli election will be held, however, we’ll have a much clearer idea as to the state of U.S. foreign policy through at least January 2017 — and if Obama is reelected, Netanyahu’s strategy of rare public disagreement with the U.S. president could become a major issue in the campaign.

Netanyahu, however, will likely make the case that he (along with his current defense minister, Ehud Barak, who himself served as prime minister from 1999 to 2001) is best placed to steer Israel through the small nation’s thorny foreign policy issues, including not only Iran and the nuclear issue, but a new president in Egypt, Mohammed Morsi, who comes from the Muslim Brotherhood, and the longstanding issue of the Palestinian territories.  A strong Likud showing could conceivably provide Netanyahu with enough support to launch a preemptive attack on Iran, with or without U.S. support.

It will be the first election since February 2009, when Netanyahu’s Likud nearly tied then-governing Kadima (קדימה‎, Forward), the centrist party founded by Ariel Sharon and other Likud moderates in 2005, including former prime minister Ehud Olmert and former leader Tzipi Livni, a former foreign minister under Olmert.  In that election, Kadima won 28 seats under Livni’s in the 120-seat Knesset and Likud won 27 seats (then an increase of 15 seats).  Although Kadima won a marginally greater number of seats, Netanyahu was able to pull together a majority coalition and thereupon became prime minister, while Livni refused to join any coalition headed by Netanyahu, thereby becoming Israel’s main opposition leader — until March 2012.

In March, Shaul Mofaz, a former defense minister under Sharon, defeated Livni in an internal Kadima leadership contest, and Livni subsequently resigned from the Knesset in May.  Soon thereafter, Mofaz caused Kadima to join Netanyahu’s existing coalition, although Kadima left the coalition in July over negotiations with respect to the so-called Tal Law and how to deal with the exemption of ultra-orthodox haredim Jews from mandatory service in the Israel Defense Force.

Kadima’s support was already expected to collapse from its 2009 levels, but Mofaz’s zig-zag from opposition to coalition and back to opposition has done nothing to boost the party’s image among Israeli voters.  Although Olmert was recently acquitted of fraud charges that ultimately led to his resignation in 2009, and he is currently seen as more popular than either Mofaz or Livni, he has not yet decided whether to return to politics.  Olmert’s return to politics, either from within Kadima or through a new party with Livni, could potentially upend the election.

A recent Haaretz poll shows Likud with a clear lead at 28%, while 35% of Israelis think Netanyahu is best suited to be prime minister.  Kadima, meanwhile, lags far behind at just 8% support, with just 6% of Israelis supporting Mofaz as the best choice for prime minister:

Israel’s Labor party (מפלגת העבודה הישראלית‎), which has traditionally been the leftist counterweight to Likud, stands to return as the chief opposition party — it fell to just 13 seats in the last Knesset, but now is the strong second-place party with 20% support under leader Shelly Yachimovich, a former journalist who took over the leadership from Ehud Barak, who has served as minister of defense since 2007 under both Olmert and now Netanyahu.  Barak, who himself served as prime minister from 1999 to 2001, left Labor in January 2011 to form his own party.  As Labor leader, Yachimovich has emphasized bread-and-butter economic issues, such as employment, high cost of living and income inequality, as well as social justice within Israel.  The poll shows that 38% of Israelis approve of Netanyahu’s government, while 53% oppose it, which leaves some amount of space for a spirited opponent to make headway between now and elections. Continue reading Netanyahu announces early elections in Israel →