Israel may be heading for its third election in a year

Significance

On October 23, President Reuven Rivlin passed on the task of forming the government to Benny Gantz, leader of the centrist Blue and White alliance, after incumbent Prime Minister Binyamin Netanyahu failed. Neither the centre-left bloc nor the bloc of religious and right-wing parties (led by Netanyahu's Likud) has a majority without Yisrael Beiteinu, but so far Gantz and Netanyahu have failed to find an acceptable compromise despite pressure from Lieberman and Rivlin to form a unity administration. Meanwhile, Netanyahu himself faces an impending indictment on corruption charges.

Impacts

• Consecutive rounds of elections will create a strain on the public finances.
• Netanyahu will refuse any power rotation deal where he is not given the premiership first.
• Another election, especially if coupled with an indictment, will accelerate a trend of public fatigue with Netanyahu.