David Weinberg, Director of the CIC Israel Office, is monitoring developments as Israeli Prime Minister designate Benjamin Netanyahu moves to complete his government.
Prime Minister designate Benjamin Netanyahu seems set to present a new government to the Knesset by next Wednesday. He had hoped to bring into cabinet several high-profile, professional figures  for the foreign affairs, finance and education ministries. But the exigencies of narrow coalition politics have dashed these plans.
Netanyahu is likely to keep the finance ministry for himself, relying for advice on Bank of Israel Governor Stanley Fisher and a group of former ministry senior civil servants. Fisher this week unveiled his own NIS 4.4 billion economic emergency stimulus plan to combat the effects of a deepening recession; a plan which was likely well-coordinated with Netanyahu.
Avigdor Lieberman’s Israel Beiteinu party will get all or most of the cabinet portfolios it requested from Netanyahu: Foreign Affairs (for Lieberman), Public Security (for former deputy police chief, Yitzhak Aharonovitch; not Uzi Landau), Tourism and National Infrastructures (for Stas Misezhnikov and Uzi Landau, in an as-yet undetermined order), and Justice (which Lieberman wants for the incumbent minister, Daniel Friedman).
The last re-appointment is the most controversial. Friedman would likely to push out incumbent Attorney General Meni Mazuz, which could in turn push new Likud MK Dan Meridor (who opposes Friedman) out of the Likud yet again. Possible compromises for the post are former justice minister Yaakov Neeman or Uzi Landau. Both men are close to both Netanyahu and Lieberman.
The National Union may be left out of the government because of its impossible demands on settlement construction. Shas and UTJ will be well sated and rewarded. The Jewish Home party has appropriately modest demands. Netanyahu’s biggest problem is with his own party. There simply aren’t enough cabinet posts left to hand out to both his long-time, loyal lieutenants and all the “star” MKs added to the party prior to the election. (More on this in the next posting).
Attorney Yitzhak Molcho has reappeared at Netanyahu’s side, participating in key diplomatic meetings and briefings (including the visit of US Secretary of State Hillary Clinton). Molcho handled negotiations with the Palestinians for Netanyahu during Netanyahu’s first term as prime minister. It appears likely that Molcho will pick-up this role again, or become Netanyahu’s go-between with the White House, an unofficial position similar to the role attorney Dov Weissglas held under former prime minister Ariel Sharon.
Netanyahu associate Dr. Dore Gold, who served as Netanyahu’s UN ambassador, is thought to be the leading candidate for the post of Israeli ambassador to the US (following the resignation of the incumbent ambassador Salai Meridor). Ron Dermer is said to have sought that posting, after serving a successful tour as Israel’s economic minister-counselor in the US. Dermer was a key Likud campaign strategist. He is likely to be Netanyahu’s public affairs and communications chief, with a wide range of responsibilities.
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