The prospect of early elections faded Tuesday after the feuding coalition partners were able to reach a compromise on the legislative proposals that had threatened to topple the government.
The coalition crisis was sparked when Ashkenazi ultra-Orthodox party United Torah Judaism threatened to stall the vote on the state budget unless its amendment to Israel's Defense Service Law was passed. The amendment aimed to legally anchor exemptions from military service to ultra-Orthodox yeshiva students.
The compromises reached include four stipulations: All factions will be able to vote freely on the conscription bill in the Ministerial Committee on Legislation; the defense minister will present the committee with his own draft of the bill by the beginning of the summer session, and his proposal will be integrated into the existing draft; no faction will present the ministerial or Knesset legislation committees with bills concerning issues of religion and state for the remainder of the government's term; and the Knesset will vote on the nation-state bill prior to breaking for the Passover recess or, at the latest, as soon as the summer session begins.
Once the agreement was signed, the Ministerial Committee on Legislation voted in favor of the conscription bill, which later also passed its preliminary Knesset reading.
The opposition presented the Knesset with several bills urging the dissolution of the Knesset, all of which were voted down.
Addressing the Knesset plenum, Prime Minister Benjamin Netanyahu said, "I promised to preserve the government and I kept my word. I thank my partners in the coalition for demonstrating responsibility so that we can continue to lead Israel with determination and success in [the fields of] security, economy, society and foreign relations."
Taking aim at the coalition, Netanyahu said, "That was scary, wasn't it? I see you have some color back in your cheeks. I know that I spared you some anguish because if we held elections, I would still be standing here and you would still be sitting there. The public's support for us is tremendous."

Yisrael Beytenu leader Defense Minister Avigdor Lieberman welcomed the agreement, saying, "We kept our word. The plan we insisted on all along was accepted. Yisrael Beytenu voted against the draft dodging law, and by the summer session the Defense Ministry will present government legislation that will resolve the issue [of haredi conscription].
"Also, there will be no new legislation on religion and state. We will continue to insist on maintaining the status quo," he said.
Kulanu leader Finance Minister Moshe Kahlon also welcomed the solution, which enabled the coalition to begin its final deliberations of the 2019 state budget. The Knesset was scheduled to vote on the budget on Wednesday evening.
"Commons sense and national interest have prevailed," Habayit Hayehudi leader Education Minister Naftali Bennett said.
Shas leader Aryeh Deri said, "I'm glad the [conscription] amendment we sought was passed. This is a continuation of the existing arrangement and I regret that some elements tried to mark political gains over it, sparking an unnecessary crisis.
"I congratulate the coalition partners for acting responsibly in the moment of truth and allowing this good government to carry on in its activities, which benefit the entire public."
Zionist Union leader Avi Gabbay slammed the government, saying, "The public as a whole has lost from the fact that we are not calling early elections.
"Today we have witnessed yet another illustration of the culture of government corruption, the loss of moral values and the fact that the coalition parties lack any moral backbone. Today we discovered who is really afraid of elections. The days of this bad government are numbered."