Netanyahu Delays Likud-New Hope Merger Over Legal and Political Risks

Prime Minister Benjamin Netanyahu is holding up the final stage of a merger between Likud and New Hope, according to a report published Tuesday in Israel Hayom. The delay stems from legal and political concerns over Section 59(3) of the Knesset Law, which allows lawmakers from a merging faction to leave and form a new faction without being treated as having illegally defected.

That provision carries major political and budgetary consequences. Any MK who uses it can create an independent one-member faction and retain full factional privileges, including state party funding, election advertising time, committee representation, and access to other parliamentary resources. In Likud, officials fear that liberal-leaning lawmakers from both parties, including Yuli Edelstein, Sharren Haskel, and Dan Illouz, could use the merger window to form separate political frameworks.

Party figures warn that such a move could strip Likud of funding units, campaign airtime, and organizational resources ahead of a future election. They also said some MKs might leave and negotiate joining another list while taking party financing worth millions of shekels with them. The more lawmakers who leave under the law, the greater the transfer of resources away from Likud to new factions.

Beyond the financial hit, Likud is worried about a political blow to the ruling party’s strength before elections. The concern has grown in recent weeks amid difficulty passing the daycare subsidies bill and opposition from some party members to the Basic Law on Torah study, since opponents could ride public support for their stance, leave Likud with their financing, and join another party. Senior Likud officials told Israel Hayom that there is no intention to fully abandon the merger plan, and if the merger is ultimately not carried out, Likud will approve a joint run with Gideon Saar’s party.