Likely Israeli coalition will quickly step up spending

Subject

Composition and agenda of a likely unity government.

Significance

De facto opposition leader Benny Gantz on March 26 agreed to enter a coalition with incumbent Prime Minister Binyamin Netanyahu. The government, terms for which have yet to be finalised, would end the political deadlock that three back-to-back elections failed to break. Although the prospective coalition will enjoy a Knesset majority of at least 75 seats, it will also cover a wide and awkward ideological spectrum.

Impacts

• Netanyahu will remain the dominant figure on the political scene for another 18 months, if not beyond.
• Equal division of portfolios between Blue and White and religious-right parties will mean a more moderate government than the previous one.
• Gantz’s decision has split his party and leaves the centre-left weaker and more divided than ever.
• The new coalition will address issues that have been put on hold during the extended interregnum and restore normal government functioning.