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Having already secured agreements with Kulanu and United Torah Judaism (UTJ) earlier this week, Likud is inching towards a coalition deal with ultra-Orthodox party Shas.

Likud leader, Prime Minister Benjamin Netanyahu met with Shas leader Aryeh Deri yesterday. According to YNet, the clinching factor in the deal was Netanyahu’s agreement to drop VAT on basic foodstuffs, which Deri had said was a condition to joining the government. Shas considers itself a champion of Israel’s poor and Deri told Army Radio that he would also push for a rise in the minimum wage and greater public housing. He said, “I am stating my demands. Nothing is set in stone. I was outside [the government] for 15 years, and we will do fine serving the public from the opposition.” Although a deal has not yet been signed, Deri is expected to become the Economy Minister and Religious Affairs Minister, while other Shas MKs will fill two deputy ministerial roles.

Speculation suggests that Shas could sign a coalition agreement as soon as today. Earlier this week, Moshe Kahlon’s Kulanu Party agreed to join a Likud-led government. Kahlon will become Finance Minister while other Kulanu MKs will serve as Housing Minister and Environment Minister. Kulanu will also control the Planning Authority and chair the Knesset Labour, Welfare and Health Committee, helping advance the party’s socio-economic agenda. Likud also signed an agreement with ultra-Orthodox party UTJ, under which party head MK Yaakov Litzman will control the Health Ministry while the party will also chair the powerful Knesset Finance Committee and provide a Deputy Education Minister.

Netanyahu has until Wednesday night to present a workable coalition to President Reuven Rivlin. Talks are expected to intensify over the coming days with Jewish Home, whose leader Naftali Bennett is vying to become Education Minister. Likud will also look to forge an agreement with Yisrael Beitenu, whose leader Avigdor Lieberman is expected to retain his current role as Foreign Minister.