Abandonment of negotiations for a "change government"

On the afternoon of 10 May 2021, the clashes in Jerusalem between Palestinian protesters and Israeli police – which had been ongoing since 6 May,^[60] escalated with the firing of over 400 rockets at Israel by both Hamas and the Islamic Jihad Movement in Palestine.^[61] This prompted a response by Israel, who initiated airstrikes in the Gaza Strip.^[62] Both attacks were lethal and also caused hundreds of injuries.^[63][64][65] As a result of these incidents, the talks on the formation of a new government were frozen indefinitely, with the United Arab List refusing to continue the then-nearly finalized negotiations with the "change bloc" and Yamina until the security situation is resolved.^[66] On 12 May, UAL leader Mansour Abbas once more clearly expressed his commitment to the continuation of talks with the parties of the prospective new governing coalition, once the widespread violence is brought under control.^[67]

During the evening of 13 May and the morning of 14 May 2021, Yamina formally abandoned the coalition talks with the "change bloc", with Naftali Bennett stating that he no longer favoured establishing a government which would rely on the support of the United Arab List. In his announcement, Bennett cited the ongoing conflict between Palestinian militant groups and the Israeli military, as well as the riots and looting taking place in Israel, as the reasons for his decision. Namely, Bennett emphasized that he felt that a UAL-backed "change bloc" government would not have the capacity to deal with the security challenges facing the country, nor could it implement the necessary legal consequences which would need to befall those who took part in the unrest. Bennett thus declared that he would once again initiate talks with Likud, and would aim to form a broad "unity government", which could possibly also include Yesh Atid, Blue and White, and New Hope. Bennett has agreed to a proposal which would turn the prime ministership into a directly elected position (as it was from 1996 until 2001), which is something that also has the support of Likud. The United Arab List's Mansour Abbas stated that he would be willing to support the decision as well, provided that several conditions – relating to the improvement of the quality of life of Israeli Arabs, were met. Meanwhile, government ministers from Blue and White rejected the possibility of entering a new government with Netanyahu,^[68][69] as did the representatives of New Hope.^[70]

On the morning of 14 May, it was reported that Likud and Yamina had reached a formal agreement on a new government. According to the deal, the latter party will be given eight reserved places among the coalition's top 40 candidates in the next Knesset election, while Bennett and Shaked will also serve as Netanyahu's defense and foreign ministers, respectively. Lapid refused to give up on forming a "change bloc" government, stating that he will keep the presidential mandate until it expires, and also expressed a willingness to face a new election if all other options fail to resolve the deadlock.^[71]

Resumption of efforts to form a government

Bennett again changed his position, and indicated on 23 May that he would be open to serving with Lapid.^[72] On 25 May, Meretz agreed to a coalition government, and thus, Lapid announced that he will be handing them the ministries of health, environment, and regional cooperation if the coalition government gets formed,^[73][74] while the ministry of treasury will be handed to Avigdor Lieberman's Yisrael Beiteinu.^[75] Lapid and Bennett met on 27 May, in a move that was not made known to any other members of Yamina.^[76] On 28 May, Lapid secured the approval of a change government by the Labor Party.^[77] Two days later, Bennett announced he was in favor of a unity government,^[78] where he would serve as prime minister until September 2023, at which point Lapid would take over.^[79]

On the afternoon of 1 June 2021, as talks between the various parties were reported to be coming to a conclusion, Mansour Abbas announced that the United Arab List intends to be a full-fledged member of the "change government" coalition. The party was said to be asking for the position of Deputy Interior Minister, who would most likely serve under Ayelet Shaked of Yamina.^[80] Meanwhile, four out of six Knesset members from the Joint List – which had formally stayed outside of both the pro-Netanyahu bloc and the "change bloc", stated that they would not support the new Bennett-Lapid government in a possible confidence vote. These MKs are from the Hadash (which includes the Israeli Communist Party and independent Ayman Odeh) and Balad factions of the coalition. On the other hand, the two MKs from the Ta'al faction remain undecided.^[81]

During the evening of 1 June, the negotiations stalled once more. Yamina's Shaked demanded to be named to the Knesset's Judicial Appointments Committee, despite Lapid having already promised the seat to Labour's Michaeli.^[82][83] On the following morning, the negotiations with the United Arab List also encountered new challenges. Specifically, media sources reported that Prime Minister Netanyahu had agreed to repeal a controversial piece of legislation which addresses illegal housing construction – popularly dubbed the "Kaminitz law", and had thereby indirectly encouraged the UAL's MKs to heighten their demands in their talks with the "change bloc".^[84] These new demands had the effect of alienating the pro-"change" right-wing parties, Yamina and New Hope, which openly oppose a repeal of the law.^[83] Negotiations on the possible "change government" also took place on the sidelines of a Knesset session called to elect the new president of Israel. Isaac Herzog was easily elected as the 11th president of the country, and achieved the support of a broad range of parties. He received 87 votes, to just 26 for his only rival, Miriam Peretz.^[85]

On the night of 2 June, just hours before the expiration of Lapid's mandate to form a government, Yamina made a formal offer to Labour, with the aim of resolving the issue surrounding the membership of the Judicial Appointments Committee. Namely, the proposal consisted of a rotation agreement, according to which Shaked would serve on the body as the government's representative during Bennett's tenure as prime minister, while a Labour MK would represent the coalition parties themselves. Then, when Bennett cedes the prime ministership to Lapid in 2023, Shaked would in turn cede her seat to Michaeli, while the Labour party MK would be replaced by an MK from Yamina.^{[citation needed]}

In response to this, Michaeli accepted the concept of a rotation, but insisted that she should serve during Bennett's tenure as prime minister, to ensure an ideological balance between the party blocs. Shaked rejected Michaeli's offer. Ultimately, the original proposal was adopted as a compromise solution.^[83][86] At the same time, Lapid, Bennett, and Abbas held a private meeting, with the aim of reaching a last-ditch consensus agreement.^[82] The "change bloc" released details of an agreement that had been reached between the various parties regarding the distribution of ministerial portfolios during Lapid's possible tenure as prime minister. Under the deal, Bennett would serve as interior minister (in addition to being Alternate Prime Minister), Shaked would become justice minister, and Sa'ar would take over as foreign minister.^[82][83] Only three hours before the deadline, the Southern Islamic Movement's shura council authorized the United Arab List to give its conditional support to the Bennett-Lapid government. The backing entailed a promise that negotiations would continue on the issues of the so-called "Kaminitz law" and the legalization of Bedouin villages in the Negev desert.^[83] Therefore, less than two hours before Lapid's mandate expired, the UAL formally joined the coalition.^[87] A new problem for the potential government arose when one of Yamina's MKs, Nir Orbach, stated that he was considering voting against the government in the Knesset. Such a move would deprive the "change government" of an absolute majority, and would tie it with the opposition at 60 seats each.^[88] During the negotiations at the Kfar Maccabiah Hotel, rival protests were being held outside by supporters of the Bennett-Lapid deal and by right-wing activists who oppose the "change government". One of the protesters who opposed the possible new government addressed the others and called for Orbach's house in Petah Tikva to be burned, should he vote in favor of the coalition deal.^[89]

Conclusion of negotiations

On the night of 2 June 2021, and less than an hour before his mandate was due to expire, Lapid informed outgoing president Reuven Rivlin that he can form a new government.^[90]

Had Lapid not succeeded in assembling a coalition by 2 June, he could have been given a one-week extension, but only as long as he claimed to have a government ready to be voted on. If this had not been the case, the mandate would have passed back to the president, who would then in turn have passed the mandate onto the Knesset itself, which would then have had 21 days to nominate one of its members for prime minister. If the Knesset could not agree on a new nominee (by an absolute majority of 61 members), the Knesset would have automatically dissolved, and a new election would have been called.^[91][92]

Final coalition agreements

On 11 June 2021, Bennett's Yamina party became the last opposition fraction to sign a coalition agreement with Lapid's Yesh Atid party. This set the stage for a new Israeli government to be sworn in on 13 June.^[93] On 12 June 2021, media sources released the content of the final coalition agreements signed between the "change bloc" parties in the preceding days.^[94]

The basic guidelines of the new government's policy would be the following: a bill to set term limits for the prime minister and allow only one re-election (though the details of the bill are not yet laid out), the setting up of a commission of inquiry to investigate the April 2021 Mount Meron disaster, the abolition of four existing government ministries – Cyber and National Digital Matters, National Infrastructures, Energy and Water Resources, Community Empowerment and Advancement, and Strategic Affairs; the increasing of the old-age income supplement to 70% of the minimum wage, the adoption of a reform package to benefit disabled war veterans, the creation of more competition among the providers of kashrut services and the introduction of consistent standards in that area, as well as the changing of the body which selects the chief rabbi (so as to allow for the election of a Zionist to the position), and the opening up of the possibility for gentiles to convert to Judaism by applying with municipal rabbinical authorities. The agreement includes creating binding regulations for reduce GHG emissions.^[94]