Netanyahu will struggle to lead new Israeli government

Significance

Prime Minister Binyamin Netanyahu formed a new government with a razor thin majority of religious parties on May 6. Under the coalition deal, secured just hours before the expiry of a constitutional deadline, Netanyahu has the support of 61 Knesset members (out of 120), the minimum requirement to form a government. His fourth administration is one of the most religious and nationalist in Israel's history. It includes the Likud breakaway party Kulanu (ten seats), the religious-nationalist Jewish Home party (eight seats) and two ultra-Orthodox parties that had been frozen out of the last coalition.

Impacts

• Netanyahu will seek to pass controversial bills including legislation defining Israel as a Jewish state and laws weakening the high court.
• A narrow government will lack the consensus and power to govern effectively and will remain hostage to individual party interests.
• Economic reforms will aim at increasing competition and lowering prices for the middle class.
• International initiatives to recognise Palestinian statehood and implement boycotts, divestments, and sanctions could accelerate.