Photo Credit: The New York Times/ Chang W. Lee

On Monday night, Israelis went to bed with a lame duck Knesset, set to dissolve in advance of early elections in September. They awoke Tuesday morning to an overnight unity deal between Prime Minister Benjamin Netanyahu of the ruling Likud party, and Shaul Mofaz, the new leader of Likud’s main rival, Kadima. For the next 18 months--allowing for the fact that in Israeli politics something can always change--Netanyahu will preside over one of the broadest coalition governments in the history of Israel, encompassing fully 94 of the 120 members of the Knesset.

At its core, the new unity government is a decision born of domestic considerations. For Mofaz and Kadima, the deal casts a life preserver to a party that stood to lose as many as half its seats in September’s election. For Netanyahu’s part, while he was projected to fare well in the early election, by widening his coalition he has bought both time and space to marginalize both the dissenters within Likud (over the composition of a parliamentary election slate) and certain right-wing parties in the current coalition who threaten to bring down the government over narrow interests. Meanwhile, a Labor led opposition drifts in the deal’s wake, now severely diminished in size and relevance.

In a press conference laying out a coalition agenda, “promoting a responsible peace process” was featured last on Netanyahu’s stated list of priorities. Peace with the Palestinians came after ending draft exemptions for religious students, reforming the political system, and fixing the economy. Nevertheless, Netanyahu now has greater room to maneuver generally. His new coalition partner is Israel’s largest centrist party, shifting the overall composition of the government back toward the middle, and the peace process could stand to benefit.

It has been barely six weeks since Mofaz ousted Tzipi Livni as leader of Kadima. During that time, Mofaz has criticized what he characterizes as Netanyahu’s preoccupation with Iran—a distraction, in Mofaz’s view, from the more pressing national security threat of a protracted conflict with the Palestinians. At Tuesday’s press conference, Mofaz—a former IDF chief of staff and defense minister—repeated his long-held view that Israel should push for an interim agreement on borders and security with the Palestinians while pursuing a final deal. Netanyahu appeared to demur, suggesting there is yet an uphill climb to common ground between the two men on the issue. Yet Mofaz's inclination toward territorial compromise flies in the face of views held by many on the far right within the preexisting coalition as well as within Likud itself. Danny Danon, for example, a Likud member of the Knesset and settler advocate, characterized the deal as a move that “spells trouble for the Jewish communities of Judea and Samaria and further moves us away from the traditional values of the Likud upon which we were elected.” Now, sitting astride an expanded political bloc, Netanyahu is in a position to take a more centrist stance on the peace process without facing a functional veto from his right -- if that is what he wishes to do.

Of course, the elephant in the room is Iran – strikingly absent from Netanyahu’s list of four priorities. Mofaz, Iranian by birth, holds strong defense and national security credentials and has previously voiced opposition to the idea of a near-term and unilateral attack on Iran. His entrance into the coalition could therefore signal an ambivalent Iran policy on the part of Netanyahu who may welcome the cover provided by Mofaz should he choose a non-military option. But it cuts both ways. With Mofaz as deputy prime minister, the strongest most credible voice of caution against a military strike on Iran has been brought out of the opposition and into the fold. Should a government decision be made to go after Iran’s nuclear capabilities, it would now be a decision carrying the imprimatur of a strongly united Israeli polity.

The U.S. and broader international community would be wise to consider the possibility that the sudden expansion of the coalition signals a closing of ranks in advance of some bold domestic but also foreign policy decisions.

This is a domestically-driven deal but nonetheless one that could have pivotal implications for regional peace.

Related Publications

Israel and Hezbollah Change the Rules, Test Redlines — Will it lead to War?

Israel and Hezbollah Change the Rules, Test Redlines — Will it lead to War?

Wednesday, June 26, 2024

Tensions between Israel and the Lebanese Shia militia Hezbollah are at their highest point since their 2006 war. They have exchanged tit-for-tat attacks since October, displacing tens of thousands from northern Israel and southern Lebanon. But in recent weeks, both sides have escalated the violence and rhetoric. USIP’s Mona Yacoubian looks at what’s driving this escalation, what each side is trying to tell the other and the diplomatic efforts underway to lower the temperature.

Type: Question and Answer

Conflict Analysis & Prevention

Gaza at the G7: The Daunting Divide between Rhetoric and Reality

Gaza at the G7: The Daunting Divide between Rhetoric and Reality

Thursday, June 20, 2024

The ongoing war in Gaza was only one of several items on the agenda for last week’s summit of leading Western economies, known as the Group of 7 (G7). But, given the global attention on Gaza and coming on the heels of the Biden administration’s most recent push to achieve a cease-fire — including sponsorship of a U.N. Security Council resolution toward that end — questions around the prospects for a negotiated pause in fighting and hostage agreement dominated the discussions.

Type: Analysis

Conflict Analysis & Prevention

Five Factors Shaping the Future of Egypt-Israel Relations

Five Factors Shaping the Future of Egypt-Israel Relations

Thursday, June 13, 2024

The Gaza war has strained Egyptian-Israeli relations to an unprecedented level and raised questions about the future of their 1979 peace treaty that has been a cornerstone of Arab-Israeli peace. U.S. officials met recently in Cairo with their Israeli and Egyptian counterparts against a backdrop of mutually diminishing confidence between the two parties, particularly following Israel’s ground offensive in Rafah. This comes on the heels of a shooting incident between Israeli and Egyptian forces that left at least one Egyptian soldier dead, and Egypt joining South Africa’s case against Israel at the International Court of Justice (ICJ). Along with Qatar, Egypt is a key broker in the current Israel-Hamas cease-fire efforts and engages in extensive security cooperation with the U.S. and Israel.

Type: Question and Answer

Conflict Analysis & Prevention

Iran’s Attack and the New Escalatory Cycle in the Middle East

Iran’s Attack and the New Escalatory Cycle in the Middle East

Tuesday, April 16, 2024

The Middle East is entering a new phase after unprecedented attacks by Israel and Iran during the first two weeks of April. Robin Wright, a senior fellow at USIP and the Woodrow Wilson Center who has covered the region for a half century, explores what happened, the strategic implications, the political context and the divided world reaction.

Type: Question and Answer

Conflict Analysis & Prevention

View All Publications