Netanyahu Mulls Coalition Deal That Boots Defense Chief Gallant

(Bloomberg) -- Israeli Prime Minister Benjamin Netanyahu is in talks about adding an opposition lawmaker to his cabinet, a move that would potentially result in firing Defense Minister Yoav Gallant, who he has often clashed with over the war in Gaza, according to a person familiar with the matter.

Netanyahu is negotiating with Gideon Saar, who wants the defense role in exchange for joining the ruling coalition, one of the people said. Netanyahu is considering whether to accept that and remove Gallant from his crucial position, the person said, at a time Israel is waging war against Hamas in Gaza and skirmishing daily with Hezbollah militants based in Lebanon.

Gallant has criticized Netanyahu for not accepting a cease-fire deal with Hamas to secure the release of hostages and for not doing more to ensure Haredi — or ultra-Orthodox — Jews serve in the military, as recently ruled by the country’s top court. 

Saar, a veteran lawmaker, would bolster Netanyahu’s government since his party has four members in the 120-seat parliament, or Knesset. Their addition would give the ruling coalition — the most nationalist in Israel’s history — 68 seats and provide Netanyahu more of a cushion should any party threaten to rebel. Netanyahu and Gallant are both Likud party members.

In addition, Saar’s less likely to demand a strict enforcement of the court ruling on the Haredim. The issue is particularly sensitive for Netanyahu because the Haredi parties in his coalition are loath for the decades-old military exemption for the ultra-Orthodox to end, despite many generals arguing that’s now necessary to keep Israel safe.

Netanyahu’s office said in a statement early Monday he wasn’t in negotiations with Saar, without referencing Gallant. Saar didn’t answer calls to his mobile.

Israeli markets weakened after local media reported that Gallant could be fired. The shekel fell 0.6% to 3.74 per dollar as of 8 p.m. in Tel Aviv, one of the worst performances globally. Yields on local-currency government bonds rose.

The defense minister has had open channels with the Pentagon and spoke with US Secretary Lloyd Austin on Sunday night. That relationship has helped the Israel-US alliance weather tensions between Netanyahu and President Joe Biden over the Gaza conflict. Israeli polls have generally shown Gallant to be more popular than the prime minister.

Gallant projected an air of normality on Monday, including meeting Amos Hochstein, one of Biden’s senior Middle East advisors, in Tel Aviv. Gallant told Hochstein it’s likely the Israeli military will have to take more aggressive action to force Iran-backed Hezbollah back from Israel’s northern border. Netanyahu met Hochstein seperately.

The most recent disagreement between Gallant and Netanyahu came in late August. Gallant was the only member of the 10-person security cabinet to vote against Israel maintaining a military presence in Gaza’s so-called Philadelphi corridor. Netanyahu’s insistence that troops remain in the corridor, which runs along the Gaza-Egypt border, has angered Hamas and Cairo and proved a key sticking point for truce talks.

Gallant, a retired admiral, also crossed swords with Netanyahu last year over a divisive judicial overhaul plan championed by the prime minister. Noting that some anti-government protesters were threatening not to turn up for military reserve duties, Gallant publicly warned that Israel’s war—readiness was being sapped. Netanyahu announced Gallant’s dismissal and then walked that back after a wave of street demonstrations.

‘Political Machinations’

Benny Gantz, another opposition leader who quit Israel’s emergency government in June after disputes with Netanyahu, said the prime minister was prioritizing his political survival over the return of the hostages, defeating Hamas and dealing with Hezbollah.

“He is busy with disgraceful political machinations and a replacement of the defense minister ahead of an intensive campaign in the north,” Gantz posted on Monday on X. “This indicates poor judgment.”

Yair Lapid, the centrist leader of the opposition, said Monday in Washington after meeting with Secretary of State Antony Blinken that Gallant “is doing a good job under terrible circumstances” and said he hoped Netanyahu will keep him on board. 

Saar held cabinet portfolios in previous Netanyahu governments. After a failed bid to unseat Netanyahu as Likud leader in 2019, Saar created the New Hope party and later allied himself with Gantz.

Together with Gantz, Saar joined Netanyahu in the emergency government after the Oct. 7 attack by Hamas that triggered the Gaza war. In March, Saar split with Gantz and withdrew from the government, complaining of his exclusion from the narrow war cabinet that was handling day-to-day decision-making.

Saar’s military experience is limited to a stint as an infantry conscript. He is a lawyer by training and former attorney-general’s aide.

--With assistance from Iain Marlow.

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