Small parties will shape Israeli politics

Subject Israeli voting trends and government stability. Significance Israel's political landscape has been fragmented throughout the country's history, with elections regularly producing unstable coalition governments. There have been 34 governments in the 67 years since the state's founding. Earlier this year parliamentary elections produced yet another coalition government headed by Prime Minister Binyamin Netanyahu and his centre right Likud party. Netanyahu was only able to return to power with a coalition of the narrowest possible majority (61 out of 120 seats). This reflects longer-term trends in Israeli politics that will play a major role in the shape and stability of its governments in the years to come. Impacts Long-term economic planning will become harder as smaller parties exact financial concessions for their communities in coalition talks. Centrist parties will have declining influence over policy as low turnout afflicts their support base. Relations with the United States and Europe will become more tense, increasing the risk of Israel's international isolation.

Significance The cabinet enters office just in time to host a fresh visit from the IMF, expected later this month. Despite another landslide victory in parliamentary elections on April 24, Prime Minister and Serbian Progressive Party (SNS) leader Aleksandar Vucic has been in no rush to form his next government. With parliament dissolved in early March, this has been a wasted year for reforms, economic or other. The next government must start working effectively if it is to make up for this, even partly. Impacts Dusan Vujovic, confirmed as finance minister, will remain the focal point for implementing the SBA. A new law on financing local government is likely to be adopted in late August or early September. This will transfer a portion of revenues from income tax from local authorities to the central government. The new government will need to come up with a less ambitious plan for public sector redundancies in 2016 and 2017.


Significance The deal reached between Iran and the P5+1 negotiating group (UN Security Council permanent members plus Germany) on July 14 promises to end most sanctions on the country, in return for suspension and monitoring of its nuclear programme. If ratified by all parties, it will create opportunities for an expansion of Iran's gas production and exports. Iran is the holder of the world's largest gas reserves, according to BP estimates. It is also the third-largest producer (after the United States and Russia, and probably having overtaken Qatar during 2015), and the fourth-largest consumer. Impacts Iran could increase gas exports by advancing projects stalled by sanctions, although most of these will take some years to come to fruition. Iran would seek to attract foreign investment into its gas industry to increase production and exports in the longer term. If this occurs, Iran will compete with other gas exporters, particularly Russia, into the 2020s.


Subject Profile of Ko Wen-je. Significance There are strong indications that Ko Wen-je, the independent mayor of Taipei, will run for election as Taiwan’s president in January 2020. Presidential hopefuls often launch their election campaigns with US trips to shore up relations with Washington, Taiwan’s key security backer; Ko will make a nine-day visit to the United States later this month. He also stated last month that he was considering forming a new political party; the single reason he would need a party of his own would be to make a run for the presidency. Impacts Ko would be a controversial and probably one-term president. Ko could have a game-changing impact in the short term but is unlikely to alter Taiwan's political landscape fundamentally in the long term. Ko would likely take a more moderate stance on China than Tsai does. Ko's outspokenness is what makes him popular, but it also makes him prone to gaffes that could ultimately undermine him.


Significance The United States and Iran are both fighting against ISG in Iraq, but their rivalry elsewhere, such as taking opposite sides in Syria and Yemen, and historic enmity has prevented explicit cooperation. They are likely to be the two most significant external actors in helping Baghdad reclaim Iraqi territory from ISG. Impacts The symbolic impact of capturing Tikrit would be significant, but its actual impact on the wider military campaign will be limited. It would provide Prime Minister Haider al-Abadi time to prepare Iraqi Security Forces (ISF) to a greater level of readiness. However, rapid success of militia forces could lead to even more difficult political choices.


Significance Canada’s Liberal Prime Minister Justin Trudeau is preparing to welcome a more predictable and stable partner in Biden than outgoing Republican President Donald Trump. However, Biden is also expected quickly to cancel the Keystone XL pipeline, cutting another lifeline to Canada’s oil industry and creating some strain in Canada-US ties. Impacts Improved Canada-US ties will persist even if Trudeau loses the next federal election to Conservative Erin O’Toole. Canada will re-engage militarily with UN peacekeeping and NATO deployments. Trudeau will encourage Biden to end US prosecution of Meng Wanzhou, allowing Canada to release her; Biden may agree. Canada’s border with the United States will open in stages as COVID-19 recedes. Ottawa will push Biden to end ‘Buy American’ procurement policies, with little success.


Significance The authorities went ahead with the arrest of Nika Melia, leader of the opposition United National Movement (UNM), on February 23 even after the prime minister resigned in protest. Georgian Dream's actions have caused concern in Western capitals that approved its election victory when the opposition cried foul. Impacts The crisis is a setback for the government's stated plan to apply for EU membership in 2024. There is growing talk in the United States about individual sanctions targeting Ivanishvili and his associates. Political turmoil will harm hopes of foreign direct investment and the imminent Anaklia port tender.


Significance Last week, its partners in the ‘Quad’ grouping -- the United States, Japan and Australia -- agreed to help increase its vaccine manufacturing and exporting capacity. Each of the Quad members is wary of China, which like India is gifting and selling coronavirus jabs around the world. Impacts India’s manufacturing sector will attract more foreign direct investment. Greater cooperation over supply chains will help strengthen India-Australia ties. Indian pharma will in the long term aim to ease dependence on imports of active pharmaceutical ingredients from China.


Significance They establish a framework for building China’s influence in the standard-setting realm over the next 15 years. China has developed a considerable presence in standards development organisations, both at the international level and in industry associations primarily based in the United States and Europe. However, its influence in these forums remains low relative to its ambitions. Impacts China will allow market-driven multistakeholder standards associations a greater role in a process so far coordinated mainly by the state. The Communist Party will maintain an overall leadership role in driving China’s standardisation work. China-led regional forums and China-based multistakeholder associations may in the long term displace US-based forums in specific areas. Environmental protection and 'green development' feature heavily in the guidelines, offering concrete areas for international cooperation. China will look to gain competencies in accreditation, certification, inspection and testing, where it has historically lagged.


Significance He did not name a new prime minister. Over July 25-26, Saied dismissed Prime Minister Hicham Mechichi, dissolved his government, suspended parliament for 30 days, lifted parliamentary immunity and declared himself chief prosecutor, triggering Tunisia’s worst political crisis in a decade. Impacts The Ennahda party could be persecuted once again, this time on corruption charges, as the reconciliation offered excludes its members. Tunisia may become a new ideological battleground, pitting Turkey and Qatar against the United Arab Emirates (UAE), Saudi Arabia and Egypt. The EU, the United States and Algeria have some influence on Tunisia and could perhaps play a moderating role.


Significance The possibility of Japan joining the alliance is now seriously discussed in Tokyo and the capitals of the Five Eyes members -- the United States, United Kingdom, Canada, Australia and New Zealand. Joining Five Eyes would signal Japan’s even deeper integration into US alliance structures, regionally and globally, and raise expectations for Japan to act as a fuller ally in all sorts of contingencies. Impacts Japan’s greatest potential contribution to allies is probably in signals and imagery intelligence, especially vis-a-vis China. The prime minister will avoid opening up a controversial foreign policy issue so close to a general election; his successor may be bolder. Japan’s partners still run a risk of leaks due to Japan’s lag in cybersecurity and institutional arrangements, but this is decreasing.


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