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What happened: Incumbent Prime Minister Netanyahu’s Likud Party has signed its first coalition agreement with the far-right Jewish Power led by Itamar Ben-Gvir.

• As he had requested, Ben Gvir will be named National Security Minister and receive an expanded public security portfolio.
• The extended powers includes authority over the Border Police operating in the West Bank.
• The party will also receive the Negev and Galilee Development Ministry which will also have an expanded remit to include regulating settlement outposts.
• In addition, Jewish Home will also receive the Heritage Ministry and a range of other positions including deputy economics minister and the chair of the Knesset Public Security Committee.
• Following the signing, Ben Gvir said, “We took an important step tonight to establish a full right-wing government. I am happy that the agreement allows Jewish Power to realise our election promises – for the security and strengthening of the Negev, the Galilee and the periphery.”
• The Likud’s lead negotiator Yariv Levin said, “I welcome the signing of the agreement with Jewish Power, which is the first agreement on the way to establishing a stable right-wing government headed by Benjamin Netanyahu that will lead the State of Israel for years to come.”

Speculation over the rest of the government: The Likud now needs to finalise agreements with the other coalition partners; Shas, Religious Zionists and United Torah Judaism (UTJ) and leave enough positions to satisfy their own MKs.

• Likud is expected to keep the defence ministry and give it to Yoav Galant, a former Major General in the IDF. Similarly the foreign ministry will also go to a Likud figure, most likely Amir Ohana.
• There had been speculation that Netanyahu’s closest confidant (and his former ambassador to Washington) Ron Dermer would be given the top diplomatic position, despite not being on the Likud slate. The prime minister does have discretion to appoint ministers who are not members of Knesset. However, there was heavy pushback inside the Likud from those concerned that the elected representatives receive the key appointments.  It has also been suggested following the Democrats relative success in the mid-terms in the US that Dermer, (with his Republican connections) would now be less appropriate to handle the most sensitive and important relationship with the US at this time.
• As well as PM, defence and foreign, the Likud will also hold the Justice Ministry, with lead negotiator Yariv Levin expected to take it.
• In total the Likud is expected to receive 18 ministries including; Transportation, Education, Communications, Culture + Sport, Energy, Economy, Regional Cooperation, Environmental Protection, Diaspora Affairs, Intelligence, Strategic Affairs, Science and Tourism.
• Shas leader Aryeh Deri is expected to receive the formal title of Deputy Prime Minister. In the past Netanyahu has been reluctant to formally appoint a deputy. This means he will automatically take over when Netanyahu travels or if he were to become incapacitated. Deri will also hold both Interior and Health Ministries as a compensation for giving up his earlier demand for the finance ministry.
• Shas is also expected to control the Welfare and Religious Affairs ministries.
• Bezalel Smotrich, leader of the Religious Zionists, will become the finance minister, with agreement to a rotation with Deri after two years.  Smotrich is also keen to expand the ministry and include the transfer of some aspects of the “Civil Administration” which affectively administers the West Bank.  The role includes responsibility for construction, infrastructure and security coordination with the Palestinian Authority Security Forces in the West Bank.  It is not yet clear which aspects of the role will be transferred and what will remain in the defence ministry.
• Religious Zionists are also looking to control the ministry for settlements and absorption.
• Finally the UTJ are anticipating party leader Yitzhak Goldknopf will be housing minister, with the party also taking the Jerusalem portfolio as well as a couple of deputy ministerial posts.

Looking ahead: Formally Netanyahu still has two more weeks to complete the task with an option of requesting a two week extension if necessary.

• Beyond the distribution of portfolios the partners will need to agree government guidelines which will guide their legislative agenda.
• There is likely to be a legal appeal on whether Shas leader Deri can hold a ministerial position after he was found guilty of tax violations last year.  He received a non-custodial sentencing that he will argue does not hold the clause of moral turpitude.  It might be necessary to enact new legislation that will allow him to hold a cabinet position.