The Times says that Western diplomats are concerned over the direction of Israel’s new government. In particular, some are troubled by a potential bill, favoured by Jewish Home’s new Justice Minister Ayelet Shaked, which would impose restrictions on Israeli NGOs which receive donations from foreign governments and is aimed at curbing the influence of left-leaning and human rights NGOs.

The Financial Times reports on the influence of Hezbollah in the conflict in Yemen, quoting a Hezbollah commander who said “we’re now international.” Meanwhile, the Daily Mirror reports that US security agencies say that their covert operations have restricted money filtering through to terror organisations in the Middle East, including £5million to Hezbollah, £8 million to al-Qaeda and £1 million to Hamas in the Gaza Strip.

The Financial Times also includes a preview of US President Obama’s summit with Gulf state leaders at Camp David on Thursday, highlighting that the Gulf states are extremely wary of a possible thaw in US-Iranian relations. Another analysis in the Financial Times, by Ray Tebeyh of the Council on Foreign Relations, says that although Washington may be hoping for a positive change in Tehran’s regime by the end of a potential long-term nuclear deal, it is more likely that Iran’s leadership will become an ever-more hawkish democracy.

In the Israeli media, Yediot Ahronot and Maariv focus on an early test for Prime Minister Netanyahu’s new government. Netanyahu wants to expand the number of ministers permitted from 18 to 22, in an attempt to placate the ministerial ambitions of his coalition partners and fellow Likud MKs. Although legislation to permit the increase was approved by cabinet yesterday, it is being strongly opposed by opposition parties who say it is a waste of public funds for the sake of Netanyahu’s political gain. Israel Radio news says that the High Court has instructed the government to respond to a petition by the opposition and Israel Hayom suggests that the entire process could delay the official swearing in of the government, which is scheduled for Wednesday.

The top story in Israel Hayom and also covered prominently in Maariv is the allegations of corruption against a former Tel Aviv prosecutor. However, Israel Hayom suggests that there is an additional scandal surrounding the former official too.

Meanwhile, Yediot Ahronot, Maariv, Haaretz and Israel Hayom all cover testimony given yesterday by the Prime Minister’s wife, Sara Netanyahu, against claims of mistreatment by a former-employee in the couple’s official residence. All reports say that Sara Netanyahu claimed that the employee hoped to bring down the Prime Minister and that her “blood was spilt” in the media controversy surrounding the allegations.