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Likud, Kulanu inch towards coalition deal, impasse with Jewish Home continues

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Likud and Kulanu are closing in on a coalition agreement according to media reports. However, disagreements apparently remain between Likud and Jewish Home.

Likud leader, Prime Minister Benjamin Netanyahu received a two-week extension to form a government from President Reuven Rivlin earlier this week. With Netanyahu and Kulanu leader Moshe Kahlon having met on Monday, both parties released statements yesterday indicating that progress had been made.

Maariv suggests this morning that an agreement has in fact been reached and will be announced early next week. Apparently, Kahlon will become Finance Minister while Kulanu will also receive the Housing and Environment portfolios too, in addition to the chairmanship of a Knesset committee. Kulanu campaigned strongly on socio-economic issues and Kahlon has pledged to reform the housing and banking industries. If it joins the coalition, Kulanu will likely be the second largest faction having won 10 seats in last month’s election.

However, other media reports say that disagreement remains between the two parties as Kulanu strongly opposes two bills ostensibly supported by Likud, which would restrict the power of the Supreme Court at the expense of the Knesset. The proposed legislation is being spearheaded by Jewish Home, which has yet to make progress in its own coalition talks with Likud. According to Maariv, a Jewish Home source commented on the bills under discussion, saying, “The judges must judge and the government must govern. It is unthinkable that the IDF and the security establishment receive orders from jurists. Restoring order and sanity is a cornerstone of the Jewish Home’s demands.”

Netanyahu met yesterday with Jewish Home leader Naftali Bennett. No statements were issued by either party, but the Jerusalem Post says that Bennett complained that Likud is capitulating to other parties on key issues. Jewish Home faction head Ayelet Shaked apparently met yesterday with Yisrael Beitenu leader Avigdor Lieberman, whose party has also yet to make progress in talks with Likud.