Netanyahu will struggle to lead new Israeli government
Significance Prime Minister Binyamin Netanyahu formed a new government with a razor thin majority of religious parties on May 6. Under the coalition deal, secured just hours before the expiry of a constitutional deadline, Netanyahu has the support of 61 Knesset members (out of 120), the minimum requirement to form a government. His fourth administration is one of the most religious and nationalist in Israel's history. It includes the Likud breakaway party Kulanu (ten seats), the religious-nationalist Jewish Home party (eight seats) and two ultra-Orthodox parties that had been frozen out of the last coalition. Impacts Netanyahu will seek to pass controversial bills including legislation defining Israel as a Jewish state and laws weakening the high court. A narrow government will lack the consensus and power to govern effectively and will remain hostage to individual party interests. Economic reforms will aim at increasing competition and lowering prices for the middle class. International initiatives to recognise Palestinian statehood and implement boycotts, divestments, and sanctions could accelerate.