The Prime Minister announced to the two that the Likud faction will support the initiative, which should temporarily resolve the dispute that could lead to elections • Blue and White insisted on a biennial budget and the Likud on an annual budget • The initiative will postpone the decision for at least two months.

• Netanyahu and Gantz at a cabinet meeting

  Photo: 

  Mark Israel Salem

• Joaz Handel

  Photo: 

  Oren Ben Hakon

• Deer Hauser

  Photo: 

  Alex Kolomoisky

Prime Minister Benjamin Netanyahu informed MKs Zvi Hauser and Yoaz Handel of the Derech Eretz faction, which belongs to a bloc of blue and whites in the government, that he was ordering the Likud faction to support their initiative to postpone the vote on the state budget. If blue-and-white chairman Benny Gantz also accepts the initiative, it means that the political crisis that threatened to lead the country to a fourth election in less than two years has been resolved, at least temporarily.

"The initiative will allow the Likud and Blue and White the time, in parallel with the promotion of the law, to reach a comprehensive solution of all disputes between them to ensure the day-to-day functioning of the government and prevent elections," Derech Eretz said in a statement. While the Likud demands an annual budget in light of the corona crisis, in blue and white they demand a biennial budget as stipulated in the coalition agreement.

The assessment in the political system is that if Ganz accepts the compromise proposal, the crisis will be postponed for at least two months. But even if Gantz opposes the proposal, it is likely that the ultra-Orthodox factions, which have announced that they oppose the election at this time, will support it, and give it the necessary majority.

In the event that the Knesset does not approve the state budget in about two weeks and the vote on it is not rejected, then the Knesset will dissolve and Israel will go to the polls. In such a scenario, Netanyahu will remain prime minister between the dissolution of the Knesset and the elections, despite the coalition agreement with Blue and White.