Netanyahu in Hot Water: Key Allies Exit Coalition Amid Draft Law Dispute

TEL AVIV, Israel (AP) — Israeli Prime Minister Benjamin Netanyahu suffered a major political blow Wednesday as a key governing partner announced it was quitting his coalition government, leaving him with a minority in parliament as the country faces a litany of challenges.

Shas, an ultra-Orthodox party that has long been a kingmaker in Israeli politics, declared it would leave the government over disagreements about a proposed law that would grant broad military draft exemptions for its constituents. This marks the second ultra-Orthodox governing party to exit this week.
{vi5}”In the current situation, it’s impossible to remain in the government and be a partner in it,” Shas Cabinet minister Michael Malkieli stated when announcing the party’s decision.

However, Shas indicated it would not undermine Netanyahu’s coalition from the outside and might support some legislation, offering Netanyahu a lifeline in what would otherwise make governing nearly impossible and jeopardize his long-standing rule.

Once their resignations take effect, Netanyahu’s coalition will hold only 50 seats in the 120-seat parliament.

Netanyahu’s leadership isn’t immediately threatened. After Shas submits its resignations, there’s a 48-hour window before they become official, giving him an opportunity to salvage his government.

Netanyahu’s Likud party has not yet commented on Shas’ departure.

The announcement comes just before lawmakers break for summer recess, giving Netanyahu several months with little legislative activity to negotiate a possible compromise on the draft law and bring the parties back into the fold.

If the coalition isn’t shored up by the time the Knesset reconvenes in the fall, it could signal that Israel may be headed for early elections, currently scheduled for October 2026.

This political instability comes at a critical time for Israel, which is negotiating with Hamas on the terms of a U.S.-backed ceasefire proposal for Gaza. Shas’ decision isn’t expected to derail these talks.

However, with a fracturing coalition, Netanyahu will face increased pressure to appease his remaining allies, especially the influential far-right faction, which opposes ending the 21-month war in Gaza while Hamas remains intact. They have threatened to quit the government if a ceasefire is implemented.

Despite losing two important political partners, Netanyahu can still move forward with a ceasefire deal once one is reached. The Biden administration has been urging Israel to conclude the war.

The embattled Netanyahu is currently on trial for alleged corruption, and critics argue he wants to retain power to use his office as a platform to rally supporters and attack prosecutors and judges. This makes him increasingly vulnerable to the demands of coalition allies.

On Tuesday, the ultra-Orthodox United Torah Judaism party announced it was quitting over Netanyahu’s failure to pass a law on military draft exemptions.

Military service is mandatory for most Jewish Israelis, and the issue of exemptions has long divided the country. These divisions have deepened since the start of the Gaza war, as demand for military personnel has increased and hundreds of soldiers have been killed.

A decades-old arrangement by Israel’s first prime minister granted hundreds of ultra-Orthodox men exemptions from compulsory Israeli service. Over the years, those exemptions have ballooned into the thousands.

The ultra-Orthodox community argues that their men serve the country by studying sacred Jewish texts and preserving centuries-old traditions. They fear that mandatory enlistment will weaken their adherents’ connection to the faith.

However, most Jewish Israelis view the exemption as unfair, especially given the generous government stipends provided to many ultra-Orthodox men who study instead of work throughout adulthood.

Netanyahu’s coalition has been trying to find a way forward on a new law. But his base largely opposes granting sweeping draft exemptions, and a key lawmaker has blocked efforts to create a law that the ultra-Orthodox could support, prompting their exit.