Israel's PM signs first agreements on path to form next coalition gov't

Israel's Likud party signed on Wednesday the first agreements with two other political parties in a bid to form the country's next coalition government.

Israeli Prime Minister Benjamin Netanyahu, who heads the Likud party, met the center Kulanu party leader Moshe Kahlon, as well as chairman of the ultra-Orthodox United Torah Judiasm at the Knesset, the country's parliament, and signed the papers.

These are the first two parties Netanyahu manages to secure in his coalition. The deadline for forming the next government is May 6, after Netanyahu received a two-week extension by Israeli president to negotiate the coalition agreements with the various parties.

"I'm thrilled ahead of our joint venture... we've spoken a lot about the steps that are needed to be taken together," Netanyahu told reporters after the meeting.

"My joint intention along with Moshe Kahlon, the future Finance Minister, is to better the condition of the citizens of Israel by economic growth that would benefit all of the citizens," Netanyahu said.

Kahlon established his center Kulanu several months before the March 17 elections, promising his voters to conduct socio-economic reforms amid the high costs of living and housing crisis in the country. Netanyahu promised Kahlon the finance minister position before the elections took place.

Kahlon has managed to secure far-reaching achievements during the negotiations, including the transfer of the important planning committee from the interior ministry to the finance ministry. He was also promised with the powers to conduct banking and housing reforms.

Yaakov Litzman from the United Torah Judiasm is set to take over the healthcare ministry as deputy minister. The party will also take charge over the Knesset's Finance Committee and managed to secure assurances from Netanyahu to cancel criminal sanctions against orthodox draft dodgers and a recent cut in the children's stipends would be canceled.

"Healthcare in Israel needs a little shaking up, and I plan to cause a positive earthquake to improve the situation in hospitals and in HMOs (Health Maintenance Organizations)," Litzman said on Wednesday.

Netanyahu was tasked by Israeli President Reuven Rivlin to form a government after his Likud party garnered 30 seats (out of 120) in the parliament on March 17 elections, with more than 60 members of parliament recommending him as the most suitable candidate.

He is still struggling to strike last-minute agreements with the Jewish Home and the ultra-Orthodox Shas party

The Jewish Home, which dropped from 12 to 8 seats in the late March polls, first demanded to get the foreign portfolio or the defense portfolio but then backed from their demands.

The party's leader is set to serve as education minister and his party is also supposed to head the agriculture ministry and the culture ministry. There are still some gaps between the parties.

There are also divide between the Likud and the Shas party. Aryeh Deri, Shas' leader, is set to head the interior ministry, which he covets. However, he is not pleased with the transfer of the planning committee to the finance ministry.

Another setback is that both the Jewish Home and Shas want to land the religious affairs portfolio. The Likud party is also set to sign a future coalition agreement with Avado Lieberman's Israel Beytenu party, with Liberman continuing to serve as foreign minister. Endit