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| Israel PM Netanyahu strikes coalition deal with rivals | Israel PM Netanyahu strikes coalition deal with rivals |
| (35 minutes later) | |
| The Israeli prime minister, Binyamin Netanyahu, has reached an agreement with rival parties to form a government that appears set to address domestic issues while putting peacemaking with the Palestinians on the back burner. | |
| The coalition will be the first government in years without ultra-Orthodox Jewish parties. | The coalition will be the first government in years without ultra-Orthodox Jewish parties. |
| The three main coalition partners are to sign an agreement on Thursday after weeks of tough negotiations. | The three main coalition partners are to sign an agreement on Thursday after weeks of tough negotiations. |
| "It's apparently the end. Or really the beginning," the Yesh Atid leader, Yair Lapid, who is likely to serve as finance minister, wrote on his Facebook page. | |
| Talks had stalled over several thorny issues, including the division of key cabinet portfolios and plans to reform the country's military draft. The government is expected to end a controversial system of giving automatic draft exemptions to ultra-Orthodox Jewish seminary students. | Talks had stalled over several thorny issues, including the division of key cabinet portfolios and plans to reform the country's military draft. The government is expected to end a controversial system of giving automatic draft exemptions to ultra-Orthodox Jewish seminary students. |
| If all goes according to plan, the government will be sworn in by Monday, two days before Barack Obama visits Israel. | If all goes according to plan, the government will be sworn in by Monday, two days before Barack Obama visits Israel. |
| Although Netanyahu's Likud-Yisrael Beitenu bloc emerged as the biggest faction with 31 seats, he has struggled to form a coalition with the necessary 61-seat majority of 120 seats in parliament. | Although Netanyahu's Likud-Yisrael Beitenu bloc emerged as the biggest faction with 31 seats, he has struggled to form a coalition with the necessary 61-seat majority of 120 seats in parliament. |
| Netanyahu courted ultra-Orthodox Jewish parties, which have been his traditional partners, but coalition members were unwilling to sit in government with them. | Netanyahu courted ultra-Orthodox Jewish parties, which have been his traditional partners, but coalition members were unwilling to sit in government with them. |
| In recent decades, ultra-Orthodox parties have used their kingmaker status to secure budgets for their minority religious schools and seminaries. Tens of thousands of young ultra-Orthodox males are granted exemptions from military service in order to devote their lives, theoretically at least, to religious study. The benefits have sparked animosity among the wider Israeli public. | In recent decades, ultra-Orthodox parties have used their kingmaker status to secure budgets for their minority religious schools and seminaries. Tens of thousands of young ultra-Orthodox males are granted exemptions from military service in order to devote their lives, theoretically at least, to religious study. The benefits have sparked animosity among the wider Israeli public. |
| Instead of the ultra-Orthodox, Netanyahu's bloc has teamed up with two parties led by charismatic newcomers who made big gains in the election. | Instead of the ultra-Orthodox, Netanyahu's bloc has teamed up with two parties led by charismatic newcomers who made big gains in the election. |
| Yesh Atid, founded by former TV personality Yair Lapid, won 19 seats in the election on a message promising relief to Israel's struggling middle class and an end to draft exemptions. | Yesh Atid, founded by former TV personality Yair Lapid, won 19 seats in the election on a message promising relief to Israel's struggling middle class and an end to draft exemptions. |
| As head of the second-largest party in parliament, Lapid will serve as finance minister, a position with great influence over the government's budget. It will also control the education ministry. | As head of the second-largest party in parliament, Lapid will serve as finance minister, a position with great influence over the government's budget. It will also control the education ministry. |
| The Jewish Home, a party linked to the West Bank settler movement led by technology millionaire Naftali Bennett, will control the housing and trade ministries. Netanyahu's bloc will retain control of the powerful defence and interior ministries. | The Jewish Home, a party linked to the West Bank settler movement led by technology millionaire Naftali Bennett, will control the housing and trade ministries. Netanyahu's bloc will retain control of the powerful defence and interior ministries. |
| The new coalition is well positioned to take on domestic issues. Bennett and Lapid formed a close alliance during the cross-party negotiations, with near-identical positions on the need to press the ultra-Orthodox to serve in the military and enter the workforce. | |
| For years, religious seminary students have been given exemptions from the draft and have been allowed to collect welfare stipends into adulthood while continuing their studies. The system has led to widespread poverty in the ultra-Orthodox sector and bred public resentment. |