Netanyahu tries to avert indictment as he fights for political life

By Jeffrey Heller

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu began his final attempt to fend off a corruption indictment on Wednesday when his lawyers argued against looming charges that have combined with election stalemate to threaten his long hold on power.

The pre-trial hearings, scheduled to be held over four days, will allow him to make his case against indictment to Attorney-General Avichai Mandelblit in three graft investigations.

A final decision by the attorney-general on whether to file charges is expected by the end of 2019.

Netanyahu, who denies any wrongdoing, faces no legal requirement to leave government if indicted, as long as he remains prime minister.

But his aura of political invincibility has been clouded by his failure to win a clear victory in parliamentary elections in April and last month, after a decade in office as head of the right-wing Likud party.

“Today, we will present all the evidence that everyone knows and some new evidence,” Amit Hadad, one of Netanyahu’s attorneys, told reporters outside Mandelblit’s office. “We believe that all three cases will be dropped after the hearings.”

Mandelblit announced in February that he intends to charge Netanyahu with bribery, fraud and breach and trust. Netanyahu has said he is the victim of a political witch-hunt spearheaded by left-wing opponents and journalists.

The investigations, dubbed Cases 1000, 2000 and 4000, have revolved around gifts of champagne and cigars that Netanyahu has acknowledged receiving from millionaire friends, purported attempts to influence media coverage and the alleged dispensing of regulatory favors.

Netanyahu has said he is the victim of a political witch-hunt spearheaded by left-wing opponents and journalists.

He is the first sitting Israeli prime minister to go through a pre-indictment hearing process.

Ehud Olmert, facing corruption allegations, quit as Israel’s leader in 2008 before such sessions could be held or any indictment filed. He was eventually charged and convicted of accepting bribes and served 16 months in jail before his release in 2017.

On Tuesday, talks to form a national unity government hit a further snag after Netanyahu’s centrist election rival, Benny Gantz of the Blue and White party, called off a meeting with him scheduled for Wednesday.

With neither leader appearing able to put together a coalition with a ruling majority on his own, Israel’s president last week gave Netanyahu 28 days to try to form the next government in the hope of securing a power-sharing deal.

Gantz, however, has pledged not to serve in a government under a premier facing criminal charges.

(Editing by William Maclean)

Netanyahu tapped by Israel’s president to assemble new government

JERUSALEM (Reuters) – Israel’s president tasked Prime Minister Benjamin Netanyahu on Wednesday with assembling a new government after power-sharing talks with his strongest rival, Benny Gantz, failed following an inconclusive election.

Netanyahu, head of the right-wing Likud party, and Israel’s longest-serving leader, still has no clear path to a fifth term after emerging from the Sept. 17 ballot, the second this year, short of a parliamentary majority.

“I have decided to give you, sir, the opportunity to assemble a government,” President Reuven Rivlin said to Netanyahu at a nomination ceremony.

He will have 28 days to form a coalition and can ask Rivlin for a two-week extension if necessary. Netanyahu’s failure to clinch victory in a ballot in April led to last week’s election and left him politically weakened.

In the new countdown, Likud has the pledged support of 55 legislators in the 120-member parliament, against 54 for Gantz’s centrist Blue and White Party. The two parties failed to reach a coalition deal in talks launched on Tuesday.

Former Defence Minister Avigdor Lieberman, a possible kingmaker, has been keeping his far-right Yisrael Beitenu party on the fence since the Sept. 17 ballot, citing differences with both Likud’s and Blue and White’s political allies.

(Reporting by Jeffrey Heller; Editing by Alex Richardson)

Explainer: “Only Bibi” no more – Israel’s Netanyahu seeks power-sharing deal

By Jeffrey Heller

JERUSALEM (Reuters) – After failing to secure a clear election victory twice in six months, Israel’s longest-serving prime minister now seems to be calculating that he can stay in power only by sharing it.

Following a deadlocked parliamentary election last week, a weakened Netanyahu reissued an offer on Monday to his centrist rival Benny Gantz for a unity government, saying that neither had enough support from respective allies for a majority of 61 seats in the 120-member parliament.

There was no sign Gantz, head of the Blue and White Party, would agree to a coalition with Netanyahu’s right-wing Likud. Gantz cited looming corruption charges against Netanyahu in saying no last week.

Israeli President Reuven Rivlin, who will pick a candidate to try to build a coalition, has called for a unity government – but does not have the legal power to compel Gantz or Netanyahu to form one together.

Wrapping up two days of consultations with leaders of all parties that won parliamentary seats in the Sept 17 ballot, Rivlin summoned Netanyahu and Gantz to a closed-door meeting later on Monday, apparently to urge them to join forces.

WHO HAS THE EDGE?

On paper, Netanyahu now has a slim lead over Gantz in building a parliamentary bloc, with pledges of support from 55 members of a right-wing grouping to 54 for Gantz from left-wing and Arab parties. But it also means that neither has secured a governing majority of at least 61 legislators.

Netanyahu’s slight edge might move Rivlin to ask him to try to build a narrow coalition if a unity government proves impossible. A nominee gets 28 days to do so, with a possible 14-day extension, before Rivlin can turn to someone else.

Gantz had appeared to have 57 backers but three of the Arab Joint List’s 13 members on Monday withdrew support they had pledged to him a day earlier.

Likud won 31 seats to Blue and White’s 33, near-complete results show.

Avigdor Lieberman, whose far-right Yisrael Beitenu party won eight seats, would remain the kingmaker if unity efforts fail. In his meeting with Rivlin, he refused to commit to either Netanyahu or Gantz, citing his own policy differences with Likud’s Jewish ultra-Orthodox allies and Blue and White’s Arab backers.

WHAT ARE THE CHANCES FOR A UNITY GOVERNMENT?

It’s complicated, even though there are only narrow policy differences between Netanyahu and Gantz on many important issues, such as relations with the United States, the regional struggle against Iran and the Palestinian conflict.

Both men appear to be more deeply divided on the composition of a unity government.

Gantz has called for a “liberal” administration, political shorthand for one that does not include Netanyahu’s ultra-Orthodox partners. After the election, Netanyahu swiftly signed a new alliance with them.

And then there’s the question of who would get the top job: Netanyahu, Gantz, or both men – in rotation?

Left-winger Shimon Peres and right-winger Yitzhak Shamir set a historic example when they took turns as prime minister in a unity government from 1984 to 1988.

This time around, if a “rotating” power-sharing agreement is reached, it could be imperative for Netanyahu to serve as prime minister first.

Next month, Israel’s attorney-general will hold a pre-trial hearing at which Netanyahu can argue against his announced intention to indict the Israeli leader on fraud and bribery charges in three corruption cases.

As prime minister, Netanyahu, who denies any wrongdoing in the long-running investigations, would be under no legal obligation to resign if formal charges are filed. But any other cabinet post he might hold would not offer him that protection.

Netanyahu’s supporters in the legislature have also pledged to seek parliamentary immunity for him against prosecution. Any unity deal with Gantz would likely have to address that issue.

(Editing by Timothy Heritage)

Israel’s Netanyahu fails to win majority in close election

By Jeffrey Heller

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu failed to win a ruling majority in an election that produced a virtual tie between his right-wing bloc and a center-left grouping that would be led by former military chief Benny Gantz.

The outcome, according to almost complete results published on Wednesday, dealt a new blow to Israel’s longest-serving leader who was already weakened by the inability to put together an administration after an inconclusive election in April.

But with coalition-building again key to forming a government, it could be days or even weeks before it becomes clear whether the wily politician hailed by supporters as “King Bibi” has been dethroned after a decade in power.

With Israeli media reporting more than 90 percent of votes counted in Tuesday’s election, the bloc led by Netanyahu’s Likud party was more or less even with a likely grouping headed by Gantz’s centrist Blue and White party.

A Likud-led bloc looked poised to control 55 of parliament’s 120 seats, with 56 going to a center-left alliance, numbers falling short of a majority government of 61 lawmakers.

A Likud spokesman said the leaders of right-wing factions met Netanyahu at the prime minister’s office on Wednesday and pledged to work with him to form the next government.

The ballot’s wildcard, former Defense Minister Avigdor Lieberman, emerged as a likely kingmaker as head of the secular-nationalist Yisrael Beitenu party, projected to capture nine seats.

Lieberman has been pushing for a unity government comprised of the biggest parties. He declined to back Netanyahu’s bid to form a narrow right-wing and religious coalition after the April election, bringing about Tuesday’s unprecedented repeat vote.

Netanyahu, who made his close relationship with U.S. President Donald Trump a main selling point in his campaign, has made no claim of victory or concession of defeat, and he planned to address Likud party legislators later in the day.

Some of the party’s leaders issued nearly identical statements expressing their allegiance to Netanyahu.

“He remains party chairman and its candidate to continue as prime minister,” said Energy Minister Yuval Steinitz of Likud.

Netanyahu, 69, appeared fatigued and hoarse in a 3 a.m. election night speech to party faithful earlier on Wednesday in which he said he intended to form a “Zionist government”, without Arab parties that could lend support to Gantz.

CONSULTATIONS

Once the last votes are tallied, Israeli President Reuven Rivlin will consult with leaders of parties that won parliamentary representation about whom to tap to try to form a government. The nominee would then have up to 42 days to do so.

Gantz has not ruled out a unity administration with Likud but has said Blue and White would not join such a government if it included Netanyahu, citing looming corruption charges against the prime minister, who has denied any wrongdoing.

In a further complication, Lieberman has rejected any alliance that includes ultra-Orthodox parties – Netanyahu’s traditional partners.

Lieberman, a Jewish settler and immigrant from the former Soviet Union, had focused his campaign on weakening the power rabbis and religious politicians have on everyday life in Israel, such as ultra-Orthodox control of the administration of marriage and divorce.

Campaigns run by Likud and Blue and White pointed to only narrow differences on many important issues: the regional struggle against Iran, the Palestinian conflict, relations with the United States and the economy.

An end to the Netanyahu era would be unlikely to bring about a significant change in policy on hotly disputed issues in the peace process with the Palestinians that collapsed five years ago.

Three corruption investigations and the Israeli attorney general’s announced intention to charge him with fraud and bribery have also chipped away at Netanyahu’s seeming invincibility.

Netanyahu can argue at a pre-trial hearing in October against indictment. But an election loss could leave him more at risk of prosecution in the graft cases, without the shield of parliamentary immunity that his current political allies had promised to seek for him.

(Reporting by Jeffrey Heller, Dan Williams, Maayan Lubell and Stephen Farrell in Jerusalem and Akram El-Satarri in Gaza; Editing by Timothy Heritage; ((jeffrey.heller@thomsonreuters.com; +97226322202)

Explainer: Israel’s election – will Netanyahu survive?

By Maayan Lubell

JERUSALEM (Reuters) – Israelis vote on Tuesday for the second time in less than six months in an election that could see Prime Minister Benjamin Netanyahu win a record fifth term – or end his decade-long dominance of Israeli politics.

He faces formidable challengers to his reign and, after the vote, possible criminal charges in three corruption cases.

The last polls taken before election day show a race that is too close to call. They predict Netanyahu’s right-wing Likud party tied with the centrist Blue and White, with neither securing an outright majority.

However, about 10 parties are likely to win parliament seats. The polls also show increasing support for a right-wing, pro-Netanyahu bloc of factions that could hand him a victory.

Here are a number of possible scenarios for how the election could play out:

1. NETANYAHU WINS CONTROL OF MAJORITY OF KNESSET SEATS

Likud, together with the three right-wing and religious parties that have already declared their support for him, win a majority. With at least 61 lawmakers, Netanyahu would have little trouble assembling a coalition similar to his outgoing cabinet, which supported his hawkish position on Iran and the 2015 nuclear deal, and took a tough stance on the Israeli-Palestinian conflict. In the run-up to the election Netanyahu said he would annex the Jordan Valley and all the settlements Israel has built in the occupied West Bank – land the Palestinians seek for a state. Such a move would delight Netanyahu’s far-right allies.

2. NO CLEAR WINNER AND NETANYAHU UNITY GOVERNMENT

After election day, Israel’s president consults with party leaders, asking them who they would support for prime minister. President Reuven Rivlin then asks the candidate he believes has the best chance to try to form a government. Netanyahu had his opportunity after the previous election in April, but failed within the allocated 42 days. Rather than risk Rivlin appointing someone else to try, Netanyahu opted for a second election.

If he is again chosen, and again faces a stalemate, Netanyahu could go outside his bloc of right-wing and Jewish religious parties to form a so-called “national unity” government with those who are not his natural allies.

That would likely mean his strongest rival, Benny Gantz, leader of the centrist Blue and White. But Gantz has said he would not join a Netanyahu-led government, citing possible corruption indictments against Netanyahu. But Israeli politics are famously fluid, with ever-shifting fealties.

3. NO CLEAR WINNER, CENTER-RIGHT GOVERNMENT FORMED WITHOUT NETANYAHU

If Netanyahu again fails to form a government, his own party could oust him to pave the way for a governing coalition between Likud and Gantz’s Blue and White, leaving Netanyahu in the political wilderness.

So far, no one in Likud has publicly broached such an idea. That could change if Netanyahu comes up short in coalition talks.

4. NETANYAHU CLEARLY DEFEATED, CENTER-LEFT GOVERNMENT

If the center and left-wing parties garner a majority in parliament, Gantz would head a government that could include his own party as well as the Labor Party and the newly-formed, environmentalist and secularist Democratic Camp, without needing an alliance with the right. It would be the first time since the 1990s that the left controlled parliament. But with an electorate shifting steadily toward the right, polls are not showing much likelihood of such a scenario.

However, if a left-leaning coalition were ultimately formed, it would be likely to pursue peace talks with the Palestinians and be more open to concessions as part of a lasting peace accord. It could also be more accepting of the nuclear deal struck between world powers and Iran.

5. NO CLEAR WINNER, NEW ELECTIONS

If no candidate can form a government, Israel would head to another snap election. But lawmakers are likely to do all they can to avoid a third this year.

HOW DOES THE ISRAELI ELECTION WORK?

The 120 Knesset (parliament) seats are allocated by proportional representation to party lists. In order to win seats, a party must get at least 3.25 percent of the national vote, equivalent to 4 seats. In the election in April, Likud and Blue and White came out on top, tied at 35 seats each. No one party has ever won an outright majority of the 120-seat Knesset in 71 years of nationhood. This makes post-election coalitions the key to victory, and negotiations can stretch on for weeks.

WHO’S THE KINGMAKER?

According to the polls, it is Avigdor Lieberman, Israel’s hawkish ex-defense minister. Polls suggest the ultra-nationalist settler will double his seats from five to about 10. Lieberman, head of the Israel Beitenu party, has said he would only join a unity government comprised of Likud and Blue and White.

However, Lieberman is something of a wild card and has made unpredictable moves in the past.

WHAT ABOUT NETANYAHU’S LEGAL WOES?

Israel’s attorney-general, who has announced his intention to indict Netanyahu in three corruption investigations, is expected to decide whether to formally charge him by the end of 2019 after a pre-trial hearing in October, during which Netanyahu, who denies wrongdoing, can argue against indictment.

A majority in the Knesset could grant Netanyahu immunity from prosecution until the end of his term. Some of his prospective allies signaled they would support such a move, but it would probably draw a public outcry and legal challenges at the Supreme Court. Even if indicted, Netanyahu would not be under strict legal obligation to step down. His right-wing and religious allies are not expected to pressure him to resign, even if he is charged.

WHAT ABOUT TRUMP’S PEACE PLAN

Netanyahu has said he expects U.S. President Donald Trump to release his long-delayed plan for Israeli-Palestinian peace soon after the election. If Netanyahu wins and forms a right-wing cabinet, he would have a hard time getting his far-right allies to sign on to any peace plan involving concessions to the Palestinians. This could either destabilize the government or bury the Trump plan. A cabinet with Gantz in it would likely be more open to negotiations with the Palestinians.

(Writing by Maayan Lubell; Editing by Jeffrey Heller and Angus MacSwan)

Former Netanyahu aide Lieberman could be Israeli kingmaker

By Jeffrey Heller

JERUSALEM (Reuters) – A former nightclub bouncer with a heavy Russian accent, Avigdor Lieberman used to carry a fresh change of shirt for his political boss, Benjamin Netanyahu.

He is now one of Israel’s most prominent politicians and opinion polls suggest he could emerge as a kingmaker after an election on Tuesday, putting him in a position where he could possibly end the prime minister’s decade in power. [nL5N25W3VZ]

After working as an aide to the right-wing Netanyahu, Lieberman quit the Likud Party and formed the far-right Yisrael Beitenu. He then went on to serve in a string of governments, including under Netanyahu, but quit as his defense chief last November in protest at a ceasefire in Gaza.

Since Netanyahu failed to form a coalition government after an election in April, Lieberman, 61, has refocused his political strategy to attract new supporters.

With opinion polls predicting Yisrael Beitenu will double to 10 the number of parliamentary seats it won in the election five months ago, Lieberman could be the linchpin in determining the composition and leadership of the next governing coalition.

It was Lieberman who handed Netanyahu a rare defeat after the April election. Netanyahu needed Yisrael Beignet’s five seats to secure a majority of 61 in the 120-member parliament but Lieberman rejected his approaches.

Lieberman is pushing for a “national unity” government after Tuesday’s poll that would include his own party, Netanyahu’s Likud and its strongest challenger, the centrist Blue and White party, but exclude what he calls “messianic” religious factions.

Where Netanyahu fits in is anyone’s guess. Blue and White’s leader, Benny Gantz, citing looming corruption indictments against the prime minister, says he is open to teaming up with Likud, but not if it is led by Netanyahu.

So far, potential successors to Netanyahu, who has denied wrongdoing in three criminal cases against him, have remained loyal. But no one party has ever won an outright parliamentary majority on its own in Israel and national politics are fluid.

“(Lieberman) has an ability to crown the next prime minister – and he knows it very well,” said Dmitri Doubov, editor in chief of Israel’s Russian-language Channel 9 television.

“I don’t think that he sees himself as the next prime minister but he can set the conditions for the next coalition to define it as he wants, as he sees fit.”

CHANGE OF FOCUS

With campaign billboards reading “Make Israel Normal Again”, Lieberman’s far-right political platform includes support for Jewish settlement in the occupied West Bank.

Most of the international community regards the Israeli settlements as illegal, a view that Israel disputes.

Lieberman, a settler himself who in his younger days also worked as an airport baggage handler, also calls for conscription of ultra-Orthodox Jews into the military.

Unlike other 18-year-old Israeli Jews, Orthodox seminary students are exempt from compulsory service. Lieberman gave his differences with an ultra-Orthodox party over a conscription bill as the reason for refusing to join the coalition Netanyahu had seemed poised to form after the election in April.

Lieberman’s frequent complaints about ultra-Orthodox political power and influence over everyday life in Israel, including the administration of marriage and divorce, have played well with his Russian-speaking immigrants, some of whom are not Jewish according to ritual law.

If the opinion polls showing a surge in support for Yisrael Beitenu are correct, his message is also now resonating with secular Israelis outside his power base.

In the port city of Ashdod, south of Tel Aviv, Jonathan Joseph Motro, a 28-year-old student, said he was looking for a candidate who was right-wing but not in step with the ultra-Orthodox. Lieberman fits the bill, he said.

“I voted Likud for a long time, now I’m voting for Lieberman,” Motro said.

Speaking at a public forum of “influencers” organized by Israel’s Channel 12 TV last week, Lieberman said in his usual deadpan delivery that “there is nothing personal” in his criticism of Netanyahu.

Back in the days of their early relationship, Lieberman would be at Netanyahu’s side during campaigning.

“Lieberman scheduled Netanyahu’s visits to Likud branches around the country, arriving in advance with signs to hang in the hall and a crisp powder-blue shirt for his fastidious boss to change into before his speech, Anshel Pfeffer, author of a Netanyahu biography, wrote in the Haaretz newspaper.

At the Channel 12 event, Lieberman said he did not rule out Netanyahu as a political ally or underestimate a veteran leader hailed by chanting Likud faithful after previous election victories as a “magician”.

“(But) I will not go to a Halacha government,” he said, in a reference to Jewish ritual law and ultra-Orthodox party participation in a coalition.

(Editing by Timothy Heritage)

Explainer: Israel’s election – will Netanyahu survive?

By Maayan Lubell

JERUSALEM (Reuters) – Israelis vote next week for the second time in less than six months in an election that could see Prime Minister Benjamin Netanyahu win a record fifth term – or end his decade-long dominance of Israeli politics.

He faces new and formidable challengers to his reign and, after the vote, possible criminal charges in three corruption cases. Recent polls have shown Netanyahu’s right-wing Likud party tied with the centrist Blue and White. They also show that neither party will secure an outright majority.

Here are a number of possible scenarios for how the Sept. 17 election could play out:

1. NETANYAHU WINS CONTROL OF MAJORITY OF KNESSET SEATS

Likud, together with the three right-wing and religious parties that have already declared their support for him, win a majority. With at least 61 lawmakers, Netanyahu would have relatively little trouble assembling a coalition similar to his outgoing cabinet, which supported his hawkish position on Iran and its 2015 nuclear deal and took a tough stance on the Israeli-Palestinian conflict. In the run-up to the election, Netanyahu has vowed to annex the settlements Israel has built in the occupied West Bank – land the Palestinians want for a state. Such a move would delight Netanyahu’s far-right allies.

2. NO CLEAR WINNER AND NETANYAHU UNITY GOVERNMENT

After election day, Israel’s president consults with party leaders, asking them who they would support for prime minister. President Reuven Rivlin then asks the candidate he believes has the best chance to try and form a government. Netanyahu had his opportunity after the previous election in April but failed within the allocated 42 days. Rather than risk Rivlin appointing someone else to try, Netanyahu opted for a second election.

If he is again chosen, and again faces a stalemate, Netanyahu could go outside his bloc of right-wing and Jewish religious parties to form a so-called “national unity” government with those who are not his natural allies.

That would likely mean his strongest rival, Benny Gantz, leader of the centrist Blue and White. But Gantz has said he would not join a Netanyahu-led government, citing looming possible corruption indictments against Netanyahu. But Israeli politics are famously fluid, with ever-shifting fealties.

3. NO CLEAR WINNER, CENTER-RIGHT GOVERNMENT FORMED WITHOUT NETANYAHU

If Netanyahu again fails again to form a government, his own party could oust him to pave the way for a governing coalition between Likud and Gantz’s Blue and White, leaving Netanyahu in the political wilderness.

So far, no one in Likud has publicly broached such an idea. But that could change if Netanyahu again comes up short in coalition talks.

4. NETANYAHU CLEARLY DEFEATED, CENTER-LEFT GOVERNMENT

If the center and left-wing parties garner a majority in parliament, Gantz would head a government that could include his own party as well as the Labour Party and the newly-formed, environmentalist and secularist Democratic Camp, without needing an alliance with the right. It would be the first time since the 1990s that the left controlled parliament although, with an electorate shifting steadily toward the right, polls are not showing much likelihood of such a scenario. However, if a left-leaning coalition were ultimately formed, it would likely pursue peace talks with the Palestinians and be more open to concessions toward them as part of a lasting peace accord. It could also be more accepting of the nuclear deal struck between world powers and Iran.

5. NO CLEAR WINNER, NEW ELECTIONS

If no candidate can form a government, Israel would head to another snap election. But lawmakers are likely to do all they can to avoid a third this year.

HOW DOES THE ISRAELI ELECTION WORK?

The 120 Knesset seats are allocated by proportional representation to party lists. In order to win seats, a party must get at least 3.25 percent of the national vote, equivalent to 4 seats. In the election in April, Likud and Blue and White came out on top, tied at 35 seats each. No one party has ever won an outright majority of the 120-seat Knesset (parliament) in 71 years of nationhood. This makes post-election coalitions the key to victory, and negotiations can stretch on for weeks.

WHO’S THE KINGMAKER?

According to the polls, it’s Avigdor Lieberman, Israel’s hawkish ex-defense minister. Polls suggest the ultra-nationalist settler will double his seats from five to around 10. Lieberman, head of the Israel Beitenu party, has said he would only join a unity government comprised of Likud and Blue and White.

However, Lieberman is something of a wild card and has made unpredictable moves in the past.

WHAT ABOUT NETANYAHU’S LEGAL WOES?

Israel’s attorney-general, who has announced his intention to indict Netanyahu in three corruption investigations, is expected to decide whether to formally charge him by the end of 2019 after a pre-trial hearing in October, during which Netanyahu, who denies wrongdoing, can argue against indictment.

A majority in the Knesset could grant Netanyahu immunity from prosecution until the end of his term. Some of his prospective allies signaled they would support such a move, but it would probably draw a public outcry and legal challenges at the Supreme Court. Yet even if indicted, Netanyahu would not be under strict legal obligation to step down. His right-wing and religious allies are not expected to pressure him to resign, even if he is charged.

WHAT ABOUT TRUMP’S “DEAL OF THE CENTURY”?

Netanyahu has said he expects U.S. President Donald Trump to release his long-delayed plan for Israeli-Palestinian peace soon after the election. If Netanyahu wins and forms a right-wing cabinet, he would have a hard time getting his far-right allies to sign on to any peace plan involving concessions to the Palestinians. This could either destabilize the government or bury the Trump plan. A cabinet with Gantz in it would likely be more open to give-and-take negotiations with the Palestinians.

(Writing by Maayan Lubell; Editing by Jeffrey Heller and Mark Heinrich)

Netanyahu tells Macron timing wrong for Iran talks: statement

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu speaks during a cornerstone-laying ceremony for Mobileye's center in Jerusalem August 27, 2019. Abir Sultan/Pool via REUTERS/File Photo

JERUSALEM (Reuters) – Prime Minister Benjamin Netanyahu urged French President Emmanuel Macron on Friday to avoid new talks with Israel’s regional arch-foe Iran, his office said, as European leaders pushed to save the 2015 nuclear deal.

“This is precisely the wrong timing to hold talks with Iran, while it is increasing its aggression in the region,” Netanyahu told Macron in a telephone conversation that was initiated by the French leader, according to the Israeli statement.

Macron on Sunday paved the way for a potential breakthrough in the standoff between Washington and Tehran over the nuclear deal after Iran’s foreign minister made a flying visit for talks with host France at the G7 summit.

On Monday, at the G7 summit, U.S. President Donald Trump said that he would meet Iran’s president under the right circumstances and that talks were underway to see how countries could open credit lines to keep Iran’s economy afloat.

The nuclear deal has been in jeopardy since the United States withdrew from it last year and re-imposed economic sanctions, seeking to push Tehran into wider security concessions including curbs on its ballistic missile program.

Netanyahu, who sees Iran as a mortal threat and has long opposed the nuclear deal, has urged that sanctions be re-imposed on Tehran. He has so far been in lockstep with the Trump administration over its Iran policy.

On Tuesday, Iranian President Hassan Rouhani said the Islamic Republic would not talk to the United States until all sanctions imposed on Tehran are lifted.

Rouhani said Iran was always ready to hold talks. “But first the U.S. should act by lifting all illegal, unjust and unfair sanctions imposed on Iran,” he said.

EU foreign policy chief Federica Mogherini said on Friday that the European Union will work to preserve the nuclear deal and would welcome any moves to add to its conditions.

Macron’s diplomatic moves came as Israel-Iran tensions flared. Last Saturday, Israel’s military struck in Syria in what it described as the thwarting of an Iranian-led killer-drone attack on Israeli targets.

On Thursday, Israel accused Iran of stepping up efforts to provide the Lebanese Hezbollah militia with precision-guided missile production facilities.

“Israel will defend itself against any attacks and prevent enemies that seek its destruction from obtaining nuclear weapons,” Netanyahu told Macron, according to the statement.

Israel and the Iranian-backed Shi’ite Hezbollah are on high alert after drones were used on Sunday to attack what a security official in the region described as a target linked to precision-guided missile projects.

Hezbollah has blamed Israel for the rare strike in Beirut, and said it will retaliate. The heavily armed group has denied harboring such missile facilities.

(Reporting by Maayan Lubell, Editing by William Maclean)

Israel says Arrow-3 missile shield passes U.S. trials, warns Iran

Israeli Prime Minister Benjamin Netanyahu and U.S. Ambassador to Israel David Friedman talk after watching a video of Israel's U.S.-backed Arrow-3 ballistic missile shield performing a series of live interception tests over Alaska, U.S., during a cabinet meeting in Jerusalem July 28 2019. Menahem Kahana/Pool via REUTERS

By Dan Williams

JERUSALEM (Reuters) – Israel’s U.S.-backed Arrow-3 ballistic missile shield has passed a series of live interception tests over Alaska, Prime Minister Benjamin Netanyahu said on Sunday, casting the achievement as a warning to Iran.

Jointly manufactured by U.S. firm Boeing Co, Arrow-3 is billed as capable of shooting down incoming missiles in space, an altitude that would destroy any non-conventional warheads safely. It passed its first full interception test over the Mediterranean Sea in 2015 and was deployed in Israel in 2017.

Israeli Prime Minister Benjamin Netanyahu and U.S. Ambassador to Israel David Friedman talk after watching a video of Israel's U.S.-backed Arrow-3 ballistic missile shield performing a series of live interception tests over Alaska, U.S., during a cabinet meeting in Jerusalem July 28 2019. Menahem Kahana/Pool via REUTERS

Israeli Prime Minister Benjamin Netanyahu and U.S. Ambassador to Israel David Friedman talk after watching a video of Israel’s U.S.-backed Arrow-3 ballistic missile shield performing a series of live interception tests over Alaska, U.S., during a cabinet meeting in Jerusalem July 28 2019. Menahem Kahana/Pool via REUTERS

“The performance was perfect – every hit a bull’s eye,” Netanyahu, who doubles as defense minister, said in a statement announcing the three secret tests.

Israel views the Arrow-3 as a bulwark against the ballistic missiles fielded by Iran and Syria.

Iran has been locked in a spiraling confrontation with the United States over its nuclear program and missile projects.

Washington said last week that Iran appeared to have tested a medium-range ballistic missile that flew about 1,000 km (620 miles). Tehran said such tests were for defensive needs.

“Today Israel has the capabilities to act against ballistic missiles launched at us from Iran and from anywhere else,” Netanyahu said on Sunday. “All our foes should know that we can best them, both defensively and offensively.”

Arrow-3’s Alaska trials had been expected last year but were postponed, following earlier difficulties in testing the system.

Its first full trial, scheduled in 2014, was aborted due to what designers said was a faulty flight by the target missile. Follow-up Israeli tests in late 2017 and early 2018 were also called off at short notice due to technical problems.

The system’s success in Alaska was held up by both Israel and the United States as a sign of the strength of their alliance.

The U.S. ambassador to Israel, David Friedman, attended Sunday’s meeting of Netanyahu’s cabinet, where he and the ministers watched a video of an Alaska missile interception.

Israel’s Ministry of Defense said that, as part of the Alaska tests, Arrow-3 was successfully synched up with the AN-TPY2 radar – also known as X-band – which provides the United States with extensive global coverage. Israel hosts an X-band battery.

“We are committed to assisting the government of Israel in upgrading its national missile defence capability to defend the state of Israel and deployed U.S. forces from emerging threats,” Vice Admiral John Hill, director of the Pentagon’s Missile Defence Agency, said in a statement.

Arrow-3 and an earlier generation system, Arrow-2, serve as the top tier of an integrated Israeli shield built up with U.S. backing to withstand various potential missile or rocket salvoes. The bottom tier is the short-range Iron Dome interceptor while David’s Sling shoots down mid-range missiles.

Also involved in Arrow’s manufacturing are Israel Aerospace Industries, Rafael Advanced Defense Systems and the Elisra Company, a subsidiary of Elbit Systems Ltd.

(Writing by Dan Williams; Editing by Susan Fenton)

Israel moves towards new vote as Netanyahu struggles to form government

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu speaks during the weekly cabinet meeting at the Prime Minister's office in Jerusalem May 19, 2019. Ariel Schalit/Pool via REUTERS

By Jeffrey Heller

JERUSALEM (Reuters) – Israel moved closer towards a new election on Monday as Prime Minister Benjamin Netanyahu’s efforts to form a government after last month’s national ballot remained deadlocked.

In a preliminary vote, parliament decided to dissolve itself. In order to disperse and set an election date, legislators would still have to hold a final vote, likely to take place on Wednesday.

Netanyahu, who heads the right-wing Likud party, has until 2100 GMT on Wednesday to put a government together, after being delegated the task by President Reuven Rivlin following the April 9 poll.

In a televised address following the initial vote in parliament, Netanyahu pledged to continue pursuing coalition talks and said a new vote would be unnecessary and costly.

“A lot can be done in 48 hours,” he said. “The voters’ wishes can be respected, a strong right-wing government can be formed.”

In power for the past decade and facing potential corruption indictments, Netanyahu has struggled to seal an agreement with a clutch of right-wing, far-right and ultra-Orthodox Jewish parties that would ensure him a fifth term.

Netanyahu has denied any wrongdoing and is due to argue against the attorney-general’s intention to indict him on fraud and bribery charges at a pre-trial hearing in October.

U.S. President Donald Trump weighed in on Netanyahu’s political woes in the face of political brinkmanship by the Israeli leader’s erstwhile ally, former defense minister Avigdor Lieberman.

“Hoping things will work out with Israel’s coalition formation and Bibi and I can continue to make the alliance between America and Israel stronger than ever,” Trump tweeted, using Netanyahu’s nickname. “A lot more to do!”

Although a second national election in the same year – unprecedented for Israel – would pose new political risks for Netanyahu, it would pre-empt Rivlin from assigning coalition-building to another legislator once Wednesday’s deadline expires.

CONSCRIPTION STALEMATE

Divisions between Lieberman’s ultra-nationalist Yisrael Beitenu party and United Torah Judaism over a military conscription bill governing exemptions for ultra-Orthodox Jewish seminary students have plunged the coalition talks into stalemate.

The five parliamentary seats that Yisrael Beitenu won in the April ballot are crucial to Netanyahu gaining a parliamentary majority.

Likud took 35 of the legislature’s 120 seats, the same number as its main rival, the centrist Blue and White party, but had the pledged support of a bigger right-wing bloc.

In a standoff with United Torah Judaism, Lieberman has demanded ultra-Orthodox must share other Israeli Jews’ burden of mandatory service. Ultra-Orthodox parties say seminary students should be largely exempt from conscription as they have been since Israel was founded in 1948.

But some commentators and members of Likud have suggested Lieberman’s real motive is to ultimately succeed Netanyahu and lead Israel’s right-wing, using the conscription bill and coalition stalemate to weaken him politically.

“Avigdor Lieberman’s only interest is to seize control of the national camp by toppling Netanyahu,” deputy foreign minister and Likud member Tzipi Hotovely told Army Radio.

Lieberman, who resigned his defense post in Netanyahu’s outgoing cabinet last November over policy towards the Palestinian enclave of Gaza, said he was acting only out of principle.

In his speech, Netanyahu welcomed the supportive remarks of Trump, with whom he has been in lock-step over policies towards the Palestinians and Israel’s Iranian foe.

“He (Trump) is right,” he said. “We have an infinite number of things to do, security challenges … economic challenges.”

But Netanyahu said he had failed “so far, including tonight” to persuade Lieberman “to avoid an election”.

(Additional reporting by Maayan Lubell; Editing by Andrew Cawthorne)