A cabinet reshuffle is expected to take place before the Knesset goes on its summer recess. Prime Minister Benjamin Netanyahu will appoint Minister of Finance Moshe Kahlon as Minister of Economy while the Ministry of Environmental Protection will be given to the Likud's Zeev Elkin. This constitutes a ministry reshuffle between Kulanu and the Likud, after Kahlon assumed responsibility over the Ministry of Environmental Protection following the resignation of Avi Gabbay.
Kahlon will gain a reduced Ministry of Economy, without responsibility for the field of employment. Minister of Construction and Housing Yoav Galant will remain in office.
This reshuffle follows the May 2016 agreement between Netanyahu and Kulanu Chairman Kahlon. After Yisrael Beytenu joined the coalition and Minister of Environmental Protection Avi Gabbay resigned, Kahlon had demanded an upgrade in Kulanu's ministries. It was decided that at the end of the Knesset's summer session, Kulanu will be given the Ministry of Economy and the Likud will receive the Ministry of Environmental Protection.
Kahlon has planned to appoint Minister of Construction and Housing Galant as minister of economy and replace him with a person from his close circle. However, due to known tensions between Kulanu's chairman and his number two, the opposition has portrayed this move as an ousting of Galant; Kahlon responded by saying that the decision is Galant's only and Galant eventually refused and is expected to remain in office. Kahlon has decided not to appoint any of Kulanu's Knesset members as ministers and keep the portfolio to himself.
In any case, Kahlon would receive a reduced Ministry of Economy; the agreement between Netanyahu and Kahlon stated that the field of employment will return to the Ministry of Welfare and Social Services. This constitutes a fulfillment of Netanyahu's obligation to Minister of Welfare and Social Services Haim Katz, who has demanded to receive these added responsibilities and resurrect the Ministry of Welfare and Employment. Katz also asked that Elkin will be given the Ministry of Environmental Protection, after the latter forfeited the Ministry of Immigrant Absorption for Yisrael Beytenu when it joined the government. However, Elkin at present is blocking Netanyahu's other plans to "upgrade" the Likud ministers.
Netanyahu has wanted to remove Elkin from his additional portfolio, the Ministry of Jerusalem Affairs and Heritage, and provide this appointment to Minister Tzachi Hangebi, who is currently minister without portfolio, while in parallel appointing current Deputy Minister of Regional Cooperation Ayoob Kara as minister without portfolio. However, Elkin refuses and will keep this portfolio.
As for the Ministry of Foreign Affairs, as expected in the coalition, Netanyahu has decided not to decide, and will not release the ministry from his control in the current round of appointments. This prestigious position is sought by many, and mainly by two of the Likud's senior Knesset members, Minister of Public Security Gilad Erdan and Minister of Transport and Intelligence Israel Katz, who have both claimed to possess a written commitment by Netanyahu to provide them with the Likud's senior portfolio. Deciding between these two adversaries would have opened an additional front for Netanyahu, just as he attempts to keep matters calm.
Published by Globes [online], Israel business news - www.globes-online.com - on July 31, 2016
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