Netanyahu delays Likud-New Hope merger over fear defectors could take state funding

Prime Minister Benjamin Netanyahu is holding up the completion of a merger between Likud and New Hope because of concern that lawmakers could break away and take millions with them. Under Israeli law, when factions merge, members of the absorbed faction may leave and form a new faction without being treated as defectors.

That legal arrangement carries major political and financial consequences. A lawmaker who uses it can create an independent one-member faction and keep the faction benefits that come with that status, including party financing, election advertising time, committee representation, and other parliamentary resources.

According to a report in Israel Hayom by Elinor Shirkani-Kofman, figures in the political system believe Likud fears a scenario in which lawmakers associated with the liberal camp in both parties, including Yuval Edelstein, Sharren Haskel, Dan Illouz and others, would exploit the merger to build separate political frameworks. Such a move could strip Likud of funding units, campaign minutes and significant organizational resources ahead of a future election.

The paper said Likud believes some members could leave and negotiate joining another list, taking with them millions of shekels in party financing, which new parties need badly. The more MKs who defect under the law, the greater the amount of resources that would move out of Likud and into the new factions.