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Gantz calls Netanyahu’s bluff on budget showdown

Prime Minister Benjamin Netanyahu’s partner and rival Benny Gantz has called his bluff, forcing him to compromise on extending the budget deadline that would have forced new elections.

Israeli Prime Minister Benjamin Netanyahu (R) and alternate Prime Minister and Defence Minister Benny Gantz (L) issue a statement at the Israeli Defence Ministry in Tel Aviv on  July 27, 2020 following the high tensions with the Lebanese militant group Hezbollah at the Israeli-Lebanon border. (Photo by Tal SHAHAR / POOL / AFP) (Photo by TAL SHAHAR/POOL/AFP via Getty Images)
Israeli Prime Minister Benjamin Netanyahu (R) and Defense Minister Benny Gantz (L) issue a statement at the Israeli Defense Ministry in Tel Aviv on July 27, 2020 following the high tensions with the Lebanese militant group Hezbollah at the Israeli-Lebanon border. — TAL SHAHAR/AFP via Getty Images

Prime Minister Benjamin Netanyahu and Defense Minister Benny Gantz had until midnight on Aug. 24 to reach a compromise on state budget. Failure to reach one would mean that the Knesset would be dispersed and new elections announced. At last moment, the two partners and rivals indeed reached a compromise, staving off the deadline for another four months.

But the compromise is bad news for the premier. If Gantz takes over from Netanyahu in November 2021 as per their coalition agreement, it would be due to this compromise. Gantz’ prospects of becoming prime minister have just grown.

Netanyahu’s vulnerability to external events, particularly US President Donald Trump’s reelection, has also increased. Netanyahu’s prayers for a Trump victory in November have likely become more fervent since Monday. A possible victory by Democratic contender Joe Biden would leave him dependent on his centrist partners Gantz and Foreign Minister Gabi Ashkenazi to convince Israelis that Israel’s relationship with the next US administration would remain as good as it has been since Trump took office.

The latest crisis of the Netanyahu-Gantz government, which is just over three months old, broke out over Gantz’ refusal to support a 2020 budget, in violation of his deal with Netanyahu that stipulated passage of a two-year budget for 2020-2021. The argument was not really over the budget, considering Israel has not had a parliament-approved budget since the end of 2018. It was about the job switch.

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