Israel election results indicate formation of a Unity Government but there are mixed views on the formation and durability of a coalition between rival parties. But the country is seeing a good start with President Netanyahu inviting Kachol Levan leader Benny Gantz for talks.

Results

• KaholLavan won 32 out of 120 Knesset seats
• Likud captured 31 but Netanyahu’s bloc comprising of right-wing and ultra-Orthodox parties presently stands at 55 seats
• The centre-left bloc has 56 seats

What is the likely outcome of these results?

Since no party has a majority to form a government, there are more chances of a unity government. Also, Netanyahu has already started the dialogue to come to terms with others and work together. He has invited Gantz for talks to chalk out a plan for forming a government.  

What economists have to say about government formation?

It is good news for economy because a unity government would be less susceptible to coalition demands from small parties and narrow sectoral interests of mean politicians. Economists favour a unity government because it would be able to take structural reforms and hold on policies of recent years. … Read the rest