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Although an agreement is expected to be finalised, talks to bring Yisrael Beitenu into Israel’s government have stalled over a disagreement on proposed pension reform.

Following the collapse of coalition talks between Prime Minister Benjamin Netanyahu and opposition leader Isaac Herzog last week, Yisrael Beitenu’s leader Avigdor Lieberman agreed in principle to bring his five MKs into the government and is expected to be appointed defence minister. The move precipitated the resignation of Likud’s Moshe Ya’alon from the defence portfolio and the Knesset entirely.

However, a coalition agreement appears to be held up by a dispute with Finance Minister Moshe Kahlon over Yisrael Beitenu’s demand for increased pension stipends for elderly residents from the former-Soviet Union, who form a core constituency of the party’s support. Kahlon, who heads the Kulanu Party of ten MKs, said that the proposal is “unacceptable” and that any increased payments must apply across the board, while Lieberman insists that pension reform is a “fundamental issue”. However, Lieberman made clear that he is “not issuing ultimatums,” while Israel Radio news says that Lieberman, Kahlon and Likud Minister Yariv Levin could approve an agreement this morning.

Meanwhile, with the prospect of an impending new-look cabinet, reports continue that various senior Likud MKs are vying for a number of positions. In particular, Haaretz says that current ministers Yisrael Katz, Gilad Erdan and Yuval Steinitz, plus Tzachi Hanegbi all hope to become Foreign Minister. Netanyahu currently fills the role and was thought to be keeping it vacant for Herzog and then Ya’alon. Meanwhile, Deputy Minister for Regional Cooperation Ayoub Kara said yesterday that Netanyahu promised him a ministerial position and he expects the pledge to be fulfilled.

In the Knesset yesterday, recriminations continued between Netanyahu and Herzog over the collapse of coalition talks last week. Herzog said that Netanyahu had “chosen to abandon the good of the state for… narrow political interest”. Netanyahu countered that “the door is open” for Herzog to join the coalition and “unite the nation”.