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Although the election results indicated that Livni’s Kadima had secured one Knesset seat more than Netanyahu’s Likud, neither party had attained a majority, and the narrow margin of the results made it unclear which party leader would ultimately be invited to form a governing coalition. Through the course of coalition discussions in the days that followed, Netanyahu gathered the support of Yisrael Beiteinu (15 seats), Shas (11 seats), and a number of smaller parties, and he was asked by Israel’s president to form a government. Despite Netanyahu leading a brittle coalition throughout much of his tenure, his party remained in the driver’s seat for several terms. In November 2016 his second premiership became the longest consecutive tenure in Israel’s history for the office of prime minister.
Early challenges
The Netanyahu government presided over a period of turbulence in both foreign and domestic affairs. Israel faced heavy international criticism in May 2010 when the Mavi Marmara, a civilian ship carrying pro-Palestinian activists, was raided by Israeli naval commandos in international waters as it sailed toward the Gaza Strip in an effort to break Israel’s naval blockade. Nine people—eight Turkish citizens and one with dual Turkish-American citizenship—were killed when the commandos opened fire after being attacked by activists armed with clubs and knives. After a UN report on the incident in 2011 failed to extract an apology from Israel, Turkey, which had been an ally of Israel, expelled Israel’s ambassador and suspended its military agreements with Israel.
In 2011, other developments in the Middle East threatened to weaken some of Israel’s important strategic alliances. A popular uprising in Egypt led to the deposal in February of President Mubarak, long considered a key ally of Israel. In August relations between the two countries soured after Israeli forces killed five Egyptian police officers near the Egypt-Israel border while responding to an attack by militants who had fled across the border into Egypt. The incident stoked outrage in Cairo, where a crowd of protesters broke into the Israeli embassy in September, forcing the evacuation of Israeli diplomats from Egypt.
Domestically there was an increase in popular unrest. In July 2011, activists set up tents in downtown Tel Aviv to protest the high cost of housing in Israel. As demonstrations spread throughout the country, the protest movement widened its focus, decrying social and economic inequality in Israel and calling on the government to increase its support for transportation, education, child care, and other public services. The protest movement continued to gather momentum in August and September, with more than 400,000 people reportedly taking part in a day of protest on September 3.
Relations with the Palestinians
Peace process stalled
The peace process, which had already slowed since 2001, came to a near halt under Netanyahu’s premiership. Though talks between Israel and the Palestinians occurred on occasion, Netanyahu and Palestinian Pres. Mahmoud Abbas rarely met for direct talks. The impasse came in part from Abbas’s demands that negotiations pick up where they had left off under the previous prime minister, Ehud Olmert, and that settlement construction be frozen. In late 2009 Netanyahu implemented a 10-month freeze on settlement construction in the West Bank, but the Palestinians wanted the freeze to extend to East Jerusalem. Nonetheless, Abbas met with Netanyahu twice near the end of the freeze, in September 2010, but the negotiations ended with the expiration of the freeze. The two did not meet face-to-face again until a UN climate change summit in 2015 and at the funeral of Shimon Peres in 2016, though talks between the two governments did occur on a lower level.
Further complications arose in 2017 when the United States, under the administration of Pres. Donald Trump, became the first major country to recognize Jerusalem as Israel’s capital. Though the change was largely symbolic, it increased tensions between Israel and the Palestinian Authority, which considered the change as confirmation that the United States would not be a fair mediator.
In June 2019 and January 2020 the Trump administration unveiled its vision for a revitalized peace process in two parts. The plan was well received in Israel, which would enjoy favourable terms on final status issues according to the plan, but the Palestinians were only further discouraged by the details. Shortly after the plan was announced, Israel began formulating plans for a partial annexation of the West Bank. Those plans continued to be delayed in the months that followed and were scrapped in August with the procurement of a peace agreement with the United Arab Emirates that would normalize relations if Israel refrained from annexation.
Palestinian unilateral bid for statehood
In September 2011, Israeli officials opposed a request by the president of the Palestinian Authority, Mahmoud Abbas, that the United Nations Security Council recognize Palestinian independence by granting full UN membership to a Palestinian state. They argued that Palestinian statehood could only be achieved through negotiations with Israel. Abbas’s bid for recognition by the Security Council stalled when it became clear that the United States would veto it and that several other members would abstain from voting.
A year after the failure of the Palestinian bid for full membership in the UN, Abbas announced that he would seek the UN General Assembly’s implicit recognition of Palestinian statehood by submitting a draft resolution to the UN General Assembly requesting that the status of the Palestinian mission to the UN (officially called Palestine within the UN) be upgraded from “permanent observer” to “nonmember observer state.” The designation, while falling short of full UN membership, would allow Palestinians to seek membership in international bodies such as the International Criminal Court. The resolution passed on November 29, 2012, with 138 countries in favour, 9 opposed, and 41 abstentions. The resolution also urged Israel and the Palestinians to resume stalled negotiations toward a two-state solution. Israeli officials opposed Abbas’s bid for recognition, saying that such unilateral actions by the Palestinians would hold up negotiations with Israel.