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Israel’s Prime Minister Benjamin Netanyahu is scheduled to meet today with Yair Lapid, head of the Knesset’s second largest party Yesh Atid, as the two leaders look to create common ground on which to build a coalition.

Netanyahu and Lapid met just two days after the election, in what was described by both sides as “a very good atmosphere.” However, Yesh Atid are thought to have subsequently issued extensive coalition demands, including a significant number of major ministerial portfolios and policy commitments. Lapid is also reported to have said that he is prepared to lead the opposition and unseat Netanyahu in eighteen months time. Meanwhile, there have been suggestions of a Yesh Atid – Jewish Home pact with both parties pledging to enter or be excluded from the government together, to reduce the leverage of Netanyahu’s Likud-Beitenu faction over either individual party.

Netanyahu has repeatedly called for the establishment of the widest possible coalition and the Jerusalem Post reports this morning that he hopes to form a government including Yesh Atid, Jewish Home, Hatnuah, Kadima and ultra-Orthodox parties such as Shas and United Torah Judaism. However, a major stumbling block towards this is the introduction of a universal military draft, which deeply divides the ultra-Orthodox parties who oppose it and in particular Yesh Atid, for whom it is a core issue. Lapid looked to reassure ultra-Orthodox critics yesterday, saying that he views Jewish religious studies as “part of the existential fabric of Israel.” Nonetheless, Yesh Atid and Jewish Home have both come under attack from leading Shas figures over recent days for their stance on the issue.

Netanyahu has not yet held formal talks with Jewish Home leader Naftali Bennett, whose parliamentary faction met yesterday to discuss extending the military draft without reaching a conclusion.