Obama says has 'substantive' dispute with Israeli PM

Benjamin Netanyahu will be asked to form Israel's next government later Wednesday after his comments exposed deep divisions with key ally Washington and damaged prospects of peace with the Palestinians.

Israel's president will name Netanyahu as candidate for the premiership, with the incumbent having already shored up rightwing and centre-right support guaranteeing him the parliamentary majority he needs for a fourth term in office.

Netanyahu's victory in polls last week has exacerbated a diplomatic crisis with the United States, bringing frosty ties between him and President Barack Obama into focus and exposing differences over the moribund Middle East peace process.

President Reuven Rivlin is nonetheless to nominate Netanyahu, with his office stressing the importance of speed in forming a new administration.

"We'll know tonight who has been charged with forming a government," a spokesman for Rivlin told AFP.

"The president certainly feels that... we need stability, and we need it quickly," he said, adding that Rivlin would "press upon the candidate the importance of getting it done as soon as possible."

Netanyahu surged to a surprise victory in last week's general election, beating the rival centre-left Zionist Union by 30 seats to 24 in the 120-member Knesset (parliament).

But Israel's political system requires the government to have a parliamentary majority, meaning in reality that every prime minister has to form a coalition cabinet.

SUPPORT FROM HARDLINERS

Six factions, comprising 67 MPs, have already thrown their support behind the premier.

Following two days of consultations, Rivlin is due to formally name Netanyahu — but only after he is presented with the official election results Wednesday evening.

Netanyahu will have four weeks to complete the task of forming a new cabinet, although Rivlin can extend the deadline by another 14 days if necessary.

There will then follow weeks of coalition horsetrading as Netanyahu's potential partners battle for portfolios and prestige.

Moshe Kahlon, head of the centre-right Kulanu party and a former Likud member, has reportedly already been offered the finance ministry.

Kahlon was expected to play kingmaker after the election, having refused to say whether he would side with Likud or the Zionist Union during a tight election race.

"Netanyahu decided not to wait and began to put the puzzle together, starting (Monday)," an editorial in Maariv newspaper wrote.
"The prime minister met with... Kahlon and as he said he would do... he promised him the finance ministry."

Netanyahu has the support of hardline rightwing and religious parties. Besides Likud and Kulanu, his new government is expected to include the far-right Jewish Home, Yisrael Beitenu and ultra-Orthodox parties.

Firebrand Yisrael Beitenu leader Avigdor Lieberman, who recently called for the beheading of Arab Israelis deemed unloyal to the Jewish state, could remain foreign minister, although he wants the defence portfolio, Maariv reported.

SPAT WITH WASHINGTON

Netanyahu's inflammatory rhetoric has exposed an acute crisis in diplomatic relations with Washington, which commentators say reflects unprecedented hostility between the two governments.

Late Tuesday, Obama insisted there was a "substantive" dispute with Netanyahu over his position on the Palestinians.
"The issue is a very clear, substantive challenge," Obama told reporters in Washington.

Netanyahu on the eve of his election victory promised there would never be a Palestinian state as long as he was prime minister.
On election day, he warned that Arab Israeli voters were going "in droves" to the polls, in a final rallying cry to the rightwing electorate.

Netanyahu later apologised for his perceived anti-Arab comments and tried to back-track on remarks opposing a two-state solution.

"We believe that two states is the best path forward for Israel's security, for Palestinian aspirations and for regional stability," Obama said.
"That's our view and that continues to be our view. And Prime Minister Netanyahu has a different approach."

The dip in relations comes as the White House suspects Israeli meddling in US foreign policy, notably over Iran nuclear talks.

A Wall Street Journal report Monday cited US officials accusing Israel of spying on negotiations with the aim of thwarting a deal.

Last week, the White House said it may withdraw crucial diplomatic cover for Israel at the UN Security Council as part of a policy rethink.
The United States has traditionally used its veto to block UN resolutions seen as anti-Israeli.

AFP