Likud and Blue and White on Sunday have reportedly agreed on a move that would help Israel avoid yet another early election and will both back a bill seeking to postpone the vote on the state budget.
Derech Eretz, a faction comprising MKs Yoaz Hendel and Zvi Hauser, elected as part of Blue and White, proposed a bill that would postpone the deadline for passing a state budget by several months, with the aim of affording Prime Minister Benjamin Netanyahu and Blue and White leader Benny Gantz more time to iron out the disagreements on the budget.
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Likud and unity government partner Blue and White have been locking horns over the question of whether to pass a one-year or two-year budget for weeks.
Blue and White demand that Likud endorse a biennial budget, as stipulated in the coalition agreement, but Netanyahu prefers a single-year budget.
Under Israeli law, if a government is unable to pass the annual budget within 100 days of its formation the Knesset must dissolve and new elections must be held.
This meant the vote on the state budget, regardless of its nature, was for Aug. 24.
The Derech Eretz bill seeks to give the government a three-month extension, setting the next budget vote for November.
As the regulations by which the vote on the state budget takes place are stipulated in Basic Law: The Government, postponing the vote requires passing a provisionary amendment to the law.
"The prime minister kept his word to spare no effort to avoid elections at this time," a Likud official told Israel Hayom. "Likud believes a one-year budget is best for the economy at a time when recovering from the corona crisis is the most important thing.
"This is no time for politics – this is a time for unity, to fight the coronavirus, and that's what the prime minister is doing. We expect Blue and White to focus on what's important, namely fighting the coronavirus pandemic and avoiding dragging Israel to unnecessary elections."
A statement by Blue and White said the party "welcomes Likud's decision to opt for political stability. Blue and White will do everything in its power to prevent the public from enduring another election campaign in the midst of one of the gravest crises in Israel's history.
"The Israeli public deserves stability at this time and we will continue to strive for it."
Ultra-Orthodox parties Shas and United Torah Judaism have also said they would back the legislative proposal sponsored by Derech Eretz.
Also on Sunday, Bank of Israel Governor Amir Yaron called on the government to pass the state budget quickly and warned that new elections would have a negative impact on the economy, which is already faltering due to the coronavirus pandemic.
"The changing morbidity trends and developments in Israel and around the world are causing great uncertainty regarding employment, businesses' income and government intake and expenses," Yaron said in a statement.
Yaron stressed that the most important thing for Israel's economy at the moment is "stability in the conduct of government and orderly decision-making," as this would help "reduce uncertainty for homes and businesses."
"The government must move forward as quickly as possible to determine a clear pattern of the state budget and take the necessary economic decisions in the current context," he added.
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