BICOM

With Benjamin Netanyahu expected to be formally asked by President Reuven Rivlin to form a governing coalition Wednesday evening, the process is already effectively underway. In a significant development yesterday, Israeli Prime Minister Benjamin Netanyahu met leader of the centrist Kulanu party leader Moshe Kahlon and offered him the job of finance minister. Kahlon campaigned on becoming finance minister, and the support of his 10 Knesset members is required to give Netanyahu a working majority.

No official coalition agreement has been announced however, with Kahlon maintaining a series of other demands, including control of the Israel Land Authority, and according to some reports, control of the powerful Knesset Finance Committee. Kahlon is also seeking written commitment from Netanyahu to promote Kahlon’s reforms targeting monopolies and cost of living.

Netanyahu also met yesterday with Yisrael Beitenu leader and foreign minister Avigdor Lieberman, whose party won six seats. Lieberman is demanding the job of defence minister, a job also coveted by Jewish Home leader Naftali Bennett, and currently held by senior Likud MK and former IDF chief of staff Moshe Yaalon. It remains to be seen how Netanyahu will navigate these conflicting demands.

Once officially called upon to form a government Netanyahu will have four weeks with an optional two week extension. Though most observers expect him to form a coalition of right-wing parties, ultra-Orthodox parties, and Kulanu, the process will nonetheless involve complex negotiations in which he will have to reconcile conflicting demands over portfolios and policy agendas. Agreeing a coalition policy may be further complicated by the considerable international pressure Netanyahu is currently under with respect to the Israeli-Palestinian peace process.