Return of Netanyahu
Benjamin Netanyahu was sworn in as Prime Minister for the second time, leading a right-wing coalition that opposes Palestinian statehood and supports settlement expansion. The government formation, after weeks of negotiations, signals a sharp rightward shift in Israeli politics.
Coalition Composition
Government partners:
- Likud: 27 seats (Netanyahu)
- Yisrael Beiteinu: 15 seats (Lieberman)
- Shas: 11 seats (ultra-Orthodox)
- Labor: 13 seats (Barak)
- Jewish Home: 3 seats (settlers)
- United Torah Judaism: 5 seats
Key Appointments
Cabinet positions filled:
- Foreign Minister: Avigdor Lieberman
- Defense Minister: Ehud Barak (remains)
- Finance Minister: Yuval Steinitz
- Interior Minister: Eli Yishai
- Strategic Affairs: Moshe Ya’alon
Policy Platform
Netanyahu’s Vision
Prime Minister’s speech:
“We seek peace with our Palestinian neighbors, but peace based on security. We will not compromise on Israel’s security needs or our historical rights.”
Government guidelines:
- No Palestinian state commitment
- “Economic peace” emphasized
- Settlement blocs retained
- Jerusalem undivided
- Security control Jordan Valley
Settlement Policy
Immediate implications:
- Natural growth continued
- Major blocs expanded
- Outpost regularization planned
- Planning restrictions lifted
- International law dismissed
Palestinian Despair
Abbas Reaction
PA President’s response:
- “Return to extremism”
- Peace process “buried”
- International intervention sought
- Unilateral steps considered
- Legitimacy crisis deepens
Hamas Vindication
Gaza rulers claim:
- “Negotiations futile proven”
- “Resistance only option”
- “Abbas path failed”
- “Unity unnecessary”
- “Struggle continues”
International Concern
Obama Administration
Washington’s challenge:
- Two-state solution commitment sought
- Settlement freeze demanded
- Regional strategy complicated
- Mitchell mission difficult
- Pressure tools limited
European Worry
EU foreign ministers:
- Diplomatic contacts frozen
- Upgrade postponed indefinitely
- Settlement focus sharpened
- Palestinian support increased
- Peace process pessimism
Lieberman Factor
Controversial Foreign Minister
Avigdor Lieberman’s positions:
- Transfer proposals
- Loyalty oaths
- Annapolis “invalid”
- Egypt peace cold
- Palestinians obstacle
Diplomatic Implications
International concerns:
- Racist statements history
- Diplomatic damage expected
- Regional isolation likely
- Peace process burial
- Extremism legitimized
Strategic Environment
Regional Dynamics
New government faces:
- Iran nuclear program
- Hezbollah rearming
- Hamas consolidation
- Syria negotiations dead
- Turkey relations strained
Security Doctrine
Netanyahu priorities:
- Iran existential threat
- Deterrence restoration
- Military superiority
- Strategic depth
- Preemption option
Economic Challenges
Global Crisis Impact
Immediate pressures:
- Recession beginning
- Unemployment rising
- Budget deficit growing
- Security spending high
- Social protests expected
Economic Peace Theory
Netanyahu’s alternative:
- Palestinian economy development
- Industrial zones
- Movement easing selective
- Political issues deferred
- Prosperity before peace
Coalition Dynamics
Internal Tensions
Fault lines evident:
- Secular-religious divide
- Settlement expansion debate
- Economic policy differences
- Personal rivalries
- Stable majority question
Labor’s Dilemma
Barak’s participation controversial:
- Party split threatens
- Peace camp abandoned
- Fig leaf accusation
- Defense portfolio priority
- Historical betrayal claimed
Historical Context
Netanyahu’s First Term
1996-1999 parallels:
- Peace process stalled then
- Relations with US strained
- Coalition collapsed
- Economic problems
- Early elections forced
Different Circumstances
2009 changes:
- Post-Gaza War timing
- Hamas Gaza control
- Iran threat paramount
- Obama not Clinton
- Regional upheaval
Opposition Weakness
Kadima Sidelined
Livni’s failure:
- Coalition forming failed
- Opposition role accepted
- Centrist alternative
- Peace process advocate
- Political future uncertain
Looking Ahead
Collision Course
Predictable conflicts:
- Obama peace push coming
- Settlement freeze pressure
- Palestinian unilateral moves
- International isolation risk
- Regional deterioration
The formation of Netanyahu’s right-wing government effectively ends hopes for near-term Israeli-Palestinian peace progress. With leadership opposing Palestinian statehood and committed to settlement expansion, confrontation with Obama administration and international community appears inevitable.