BICOM

Both Likud-Beitenu and Jewish Home reported yesterday that substantial progress had been made in attempts to reach a coalition agreement between the two parties.

Prime Minister Benjamin Netanyahu, who heads the Likud-Beitenu faction, has until this weekend to finalise a coalition government or else will be required to request a two week extension from President Peres. Relations between Likud-Beitenu and Jewish Home have appeared strained over recent weeks. Jewish Home has since formed an informal alliance with Yesh Atid, whereby neither party will enter the coalition without the other.

However, marathon talks between Likud-Beitenu and Jewish Home, which ended in the small hours of Tuesday, appeared to result in progress between the two parties — in particular on the issue of drafting ultra-Orthodox religious seminary students. It is thought that Jewish Home is negotiating on Yesh Atid’s behalf on this issue. A Likud spokeswoman said, “Significant progress was reached in a long line of issues” and suggested that “we can finish the negotiations… immediately.” Jewish Home head Naftali Bennett was similarly upbeat, commenting that negotiations “have finally begun to deal with essence,” focusing on policy, which he described as “good news.”

However, there are conflicting reports this morning over the intentions of the Knesset’s second largest party Yesh Atid, led by Yair Lapid. Maariv reports that in return for bringing Likud-Beitenu closer to its own position on the ultra-Orthodox draft, Yesh Atid will back Jewish Home’s opposition to Tzipi Livni heading future Israeli negotiations with the Palestinians, agreed last week as part of Hatnuah’s coalition agreement. However, Jerusalem Post suggests that Lapid is considering remaining outside the government and will met with Meretz leader Zahava Gal-On next week to canvass support for Lapid as leader of the opposition.