Netanyahu Returns to Power Leading Right-Wing Coalition

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.