News analysis: Netanyahu´s government gains political stability after gets parliament approval

Asked whether different guidelines between Labor and right-wing parties could disturb the coalition, Diker noted that Labor actually "is not that left from a foreign policy point of view."

"For example, Lieberman and Barak are not far apart in the issue of Iran, Syria and Palestine," he added.

"Lieberman said he is in favor of a two-state solution with the Palestinians. The Shas party has been showing very accommodating in foreign policy. And none of the coalition partners would compromise on the issue of Jerusalem," said Diker, adding "so I believe that it is a broad and stable coalition."

BUDGET STRUGGLE

For Netanyahu, the first challenge of maintaining the stable national unity government is to meet the demands of the coalition partners, which will cost taxpayers an estimated 6.5 billion shekels (approximately 1.58 billion U.S. dollars) over the next few years.

Israeli outgoing Finance Minister Ronnie Bar-On warned that the commitments cannot be met in light of a growing budget deficit and a deepening economic crisis.

The state budget is already headed to a deficit of 45 billion to 50 billion shekels (approximately 10.97 billion to 12.19 billion dollars) this year as a result of falling tax receipts and the costs resulting from Operation Cast Lead and other past and future demands from the defense establishment, according to Shlomo Maoz, chief economist at Excellence Nessuah Investment House in Tel Aviv.

"I don't believe that Netanyahu will be able to get approval by the Knesset - in view of fierce opposition by the Treasury - for all the coalition commitments he has made," said Maoz.

Editor:Shi Taoyang