UPDATED IN A FOLLOW-UP DIARY
This is potentially big news....
Apparently in late night discussions - Israel's largest party Kadima (28 Knesset seats) which is in the opposition AND Likud the leading party of the ruling coalition and party of Prime Minister Benyamin Netanyahu (27 Knesset seats) have decided to form a National Unity Government where Kadima leader Shaul Mofaz gets to be Deputy Prime Minister.
Here is the story from the Israeli Daily Haaretz:
Prime Minister Benjamin Netanyahu and opposition chairman MK Shaul Mofaz (Kadima) reached a surprise agreement early Tuesday morning to form a national unity government.....
.....Under the agreement, Kadima will join Netanyahu's government and commit to supporting its policies through the end of its term in late 2013. Mofaz is expected to be appointed deputy prime minister, as well as minister without portfolio.
In exchange, Netanyahu's government will support Kadima's proposal to replace the Tal Law, which enables ultra-Orthodox youth to defer national service
This is a total surprise move ahead of a move by various parties to call for early elections.
Not much yet on this but stay tuned for more to come....
So far reaction from the Israeli Left:
Meretz head Zahava Gal-On expressed outrage over the surprise move, calling it a "mega-stinking maneuver by a prime minister who wants to avoid elections and a desperate opposition chairman facing a crash."
"This is a disgrace to the Israeli parliament and a terrible message to the public, who is losing faith in the leadership of the state," she added
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