Senior Likud sources believe that a coalition agreement to set up a new government could be signed next week with the Yesh Atid and Habayit Hayehudi parties after significant progress in talks in the past few days, Hebrew daily "Maariv" reports.
The way has been paved for Yesh Atid leader MK Yair Lapid and Habayit Hayehudi leader MK Naftali Bennett to sign an agreement with Prime Minister Benjamin Netanyahu following progress is talks over the main bone of contention, how to implement an equal burden of military service for all. The agreement being put together would cut off yeshiva students' stipends who have refused to undertake military or national service by the age of 21 except for a special quota of students in Torah studies.
These senior Likud sources believe that negotiations on other topics on the agenda such as the state budget, peace talks and the size of the cabinet, are also continuing in a positive atmosphere and that the signing of a coalition agreement can be expected in the coming few days. One source said, "The aim is to reach a complete agreement by next week."
Netanyahu foregoes the ultra-orthodox
Last night, Channel 2 News political correspondent Rina Mazliach reported that Likud-Beitenu had finally realized that Yesh Atid and Habayit Hayehudi were not going to back down on their demands and had no intention of breaking up the strong alliance that had been formed between Lapid and Bennett.
Consequently, Netanyahu will probably be compelled to forgo the haredi (ultra-orthodox) parties in the next government coalition. He will give the Shas and United Torah Judaism (UTJ) leaders an opportunity to join the coalition at a later stage. This stems from the fact that the new coalition's policy on national and military service will not make it possible for Shas and UTJ to join the government, at least in the first phase.
On Saturday night, Netanyahu will go to see President Shimon Peres and ask for a two-week extension in which to form a government.
Published by Globes [online], Israel business news - www.globes-online.com - on February 28, 2013
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