Prime Minister Benjamin Netanyahu and his centrist election rival Benny Gantz signed an agreement on Monday to form an emergency coalition government that would end a year of political deadlock.
Netanyahu's right-wing Likud and Gantz's Blue and White party issued a joint statement saying they had clinched a unity deal, which follows elections in April and September 2019 and on March 2 in which neither won a governing majority in parliament.
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The two had agreed Netanyahu would remain prime minister for 18 months period until Gantz takes over in late 2021.
Until then, Gantz, a former Israel Defense Forces chief, will serve as defense minister and several of his political allies, including two members of Israel's Labour Party, will receive ministerial portfolios as well. He will also be considered "alternate prime minister". Once Gantz becomes prime minister, Netanyahu would get the title "alternate prime minister."
The deal needs various legislative measures to be enacted, including amendments to basic law, but because the emerging coalition has a majority of Knesset seats, this will not be a hurdle.
During the negotiations, the parties cited a number of sticking points, including the planned extension of Israeli law in Judea and Samaria and setting a nomination process for judges.
Netanyahu, in power consecutively for the past 11 years, is under criminal indictment on corruption charges which he denies. They include bribery, fraud and breach of trust.
Gantz on the campaign trail promised not to sit in a government led by a prime minister facing criminal charges, but he recently backtracked, saying the enormity of the coronavirus crisis necessitated an emergency unity government.
"We have prevented a fourth election. We will protect democracy. We will fight coronavirus and care for all Israel's citizens," Gantz said on Twitter after signing the deal. Netanyahu tweeted a picture of Israel's blue and white flag.