Originally published at Rubin Reports.
On the issues about which the world is obsessed, Israel’s new government is basically a continuation of the old one. That is the key point to keep in mind regarding the new coalition which has a comfortable 68-seat majority, well over the 61 minimum parliamentarians required.
Basically, Prime Minister Benjamin Netanyahu is in a strong position as these things go. It is notable that there is not a single other person seriously considered to be a serious candidate for prime minister. Of course, he will have the usual headaches of managing a disparate coalition in which parties will quarrel, threaten to walk out and make special demands.
The coalition consists of Netanyahu’s Likud (merged with Avigdor Lieberman’s Yisrael Beitenu party); Yair Lapid’s Yesh Atid party, which might be called traditionally liberal in American terms; Naftali Bennett’s right-wing and dati religious (Modern Orthodox, in American terms) party, Habayit Hayahudi; and Tzipi Livni’s rather shapeless and personalistic Hatnuah party. A key element of this coalition is the alliance of Bennett and Lapid in opposition to the Haredi (mistakenly called “ultra-Orthodox” in the West) religious parties.
While this is certainly a conservative-dominated government, I have yet to see anyone in the mass media point out that it includes two of the three largest left of center parties!
Of the three key ministries, Netanyahu will be foreign minister, holding that post “in trust” for indicted former foreign minister Avigdor Lieberman, whose party ran on a joint list with the Likud. In practice, this means Netanyahu will have close control over implementing his policies internationally. The defense minister is the very able Moshe Yaalon, a Likud member and former head of military intelligence.
Lapid will run the Finance Ministry, dealing with issues on which he has no experience at all. This is not so unusual in parliamentary systems, where senior civil servants actually run the ministries. But Lapid holds this post because his signature issues are to urge reforms in the economy. His party will also get education, social services, health, and science and technology.
Here is something of a paradox. Israel has been one of the most successful countries in the developed world because it has refused to join the high-spending, high-debt, subsidy-oriented policies of Europe and now the United States. Unemployment and inflation have been low; growth has been relatively high. The problem, though, is that prices are also relatively high compared to incomes, causing problems especially for young people and consumers generally.
Lapid is expected to revise the management of the golden eggs without doing harm to the goose that laid them. Arguably, the number-one issue for this government is whether Lapid can perform well. His father, a popular journalist, followed the precise same course as the son a few years ago and failed completely. The junior Lapid has no actual political experience and does have characteristics of Tel Aviv beautiful people society. If he falters, his party will disintegrate in the next election.
As for Bennett, the amusing spin on much coverage is that his party has succeeded, that settlers even dominate the government, because he will have a couple of minor ministries which don’t have much power. Actually, he got less than I would have expected. While the settlements might benefit a little economically from these positions–and from the party’s holding the chairmanship over the Knesset finance committee–they will not have much authority and control little money directly.
If there is a big winner in the new government it is Lapid’s reformist liberals (in the old American sense, not the redefinition imposed on that word by the American far left). They are going to have a chance to show if they can improve social services, a fairer distribution of resources (the issue isn’t so much between rich and poor but across different sectors), and an economy that retains its growth while managing the problem of high prices, among other things.
Meanwhile, although the world is obsessed with non-existent issues regarding the long-dead “peace process” or fantasy options for Israel to make friends with neighboring Islamist regimes by giving even more concessions, Israel strategically is focused on defense.
Four of the six bordering entities—Egypt, the Gaza Strip, Lebanon, and soon Syria—are ruled by radical Islamist groups that openly declare their goal of wiping Israel off the map. And that list doesn’t even include extremely hostile Iran (whose drive toward nuclear weapons cannot be forgotten for a moment) and the virulently anti-Israel regime in Turkey.