Likud and Yisrael Beiteinu, which had run a common list in the election, were the largest party in the Knesset, with 31 seats, and formed the government. Hatnuah agreed to become part of the government in February.[2] The final coalition agreement between Likud-Beteinu and the other parties was as signed on 15 March.[3] The coalition parties held 68 of the 120 seats in the Knesset. The parties agreed to a deal that would raise the voting threshold in future elections from 2 to 4 percent; had this restriction been effect in the 2013 elections, Kadima and the three Arab parties would have failed to qualify for seats in the Knesset. Some have suggested the change was implemented as an attempt to limit Arab representation, but that it could ultimately force the Arab parties to merge and this would bring greater unity in the long run.[4]
On 2 December 2014, Netanyahu dismissed Minister of Justice Tzipi Livni (Hatnuah) and Minister of Finance Yair Lapid (Yesh Atid). Four other Yesh Atid ministers then resigned. This dissolved the government ahead of schedule, resulting in elections on 17 March 2015.
Cabinet members
There were 29 ministerial posts to fill, but Yesh Atid leader Yair Lapid called for a smaller cabinet. In response, the coalition agreed the cabinet was to have 20 members, with several members holding multiple ministries, plus eight deputy ministers.[5] However, the cabinet that was sworn in had 22 ministers and eight deputy ministers.[6] This did not include Foreign Minister Avigdor Lieberman, who had resigned in December 2012 after being charged with fraud. PM Netanyahu served as Foreign Minister until November 2013, when Lieberman was acquitted and returned to office.[7]
In 2014, Housing Minister Uri Ariel from the Jewish Home party urged the Israeli government to accelerate construction projects in the West Bank, particularly in response to the newly formed Fatah-Hamasnational unity government,[8] which he viewed as a direct challenge to Israeli interests. Ariel argued that expanding settlements in the area would strengthen Israel’s position and security. However, this call for expansion sparked significant tension within the coalition government. Finance Minister Yair Lapid from Yesh Atid threatened to dissolve the government if unilateral actions, such as annexing parts of the West Bank, were taken.[9] Lapid expressed concern that such moves could lead to international isolation and economic repercussions, further complicating relations with the U.S. and European Union. Justice Minister Tzipi Livni from the Hatnua party joined Lapid in opposition, warning that annexing parts of the West Bank without negotiations would jeopardize Israel’s democratic and international standing.[10] In contrast, Religious Affairs Minister Naftali Bennett, also from the Jewish Home party, argued that annexation of settled areas in the West Bank was the "only sane plan," insisting that the long-standing debate over whether to retain or leave the settlements was counterproductive and that past efforts to reach a resolution on this issue had repeatedly failed. He viewed annexation as a logical step that would provide clarity and strengthen Israel's control over key areas. Despite these internal divisions, government spokesperson Mark Regevdeclined to address the differing views, refraining from commenting on either the annexation proposal or the resistance from coalition partners.[11]