Trade Union Friends of Israel

The Labor Party under new leader Amir Peretz, the former Chair of the Histadrut (Israel’s equivalent of the TUC), had a moderately successful night. It gained the same number of MKs as in the 2003 election despite the defection to Kadima of Labor MKs including Shimon Peres and many Labour members. The result is seen as a vindication of new leader Amir Peretz’s strategy to focus on social issues as a key plank of the campaign. This new focus combined with Peretz’s personal position as the first major party leader from the Mizrahi (Jews from the Middle East and Africa) community, enabled Labor to reach out to sections of society that had previously seen Labor as the party of the Ashkenazi (European Jewish) elite.

Nadia Hilu, Deputy Chair of the Histadrut women’s department Na’amat, was elected to the Knesset on the Labour list. Nadia is the only Israeli Arab woman elected to the current Knesset and one of 16 women MKs elected (down from 18 in the previous Knesset). Despite pre-election fears of a low turnout amongst Arab voters the three predominantly Arab parties gained a total of ten seats, four for Ra’am Ta’al (United Arab List) and three for both the communist party Hadash and the nationalist Balad. Israeli Arab former Histadrut official Raleb Majadele was re-elected to the Knesset on the Labor list, whilst Druze MK Majalli Whbee was re-elected for Kadima. In all the new Knesset will contain 12 MKs from Israel’s Palestinian, Druze and Bedouin communities (MK Dov Hanin of Hadash is Jewish), 10% of the total Knesset.

It was a disastrous night for the former ruling right wing party Likud, led by former Prime Minister Binyamin Netanyahu winning only 12 seats, falling from first to fourth place. The collapse of Likud can be explained by two main factors the creation of Kadima taking away the majority of its high profile moderate politicians and the personal unpopularity of Netanyahu due to his opportunist political style and his economic policies.

Likud was beaten by the Mitzrahi Ultra-Orthodox Party Shas who also received 12 seats. Shas remain flexible on peace process issues, call for a strong social welfare network and for state support for separate Ultra Orthodox schools. The far right predominantly Russian Yisrael Beiteinu (Israel is our Home) party led by former Netanyahu protégé Avigdor Lieberman came within 116 votes of Likud and gained 12 seats. The rise of Lieberman’s party is deeply concerning as although unlike other far right groups it is willing to consider some settlement withdrawal and the creation of a Palestinian State, its mechanism for doing this is a racist policy of trading Israeli Arab villages with the Palestinian Authority in return for keeping Israeli settlement blocks. The far right pro-settler National Union-National Religious Party received 9 seats, whilst the Ashkenazi Ultra Orthodox Party United Torah Judaism gained 6 MKs.

The other main shock of the night was the success of Gil (The Pensioners Party). Having traditionally failed to gain enough votes to enter the Parliament the party stunned pundits by gaining 7 Knesset seats. Led by former Mossad and Shin Bet Agent Rafi Eitan, the party has benifited from the Labor-driven focus on social issues that have played a key role in the campaign for the first time in recent years (also assisting Shas and Yisrael Beiteinu) and from a campaign urging non voters to vote for them as a protest. The centrist secular party Shinui, that had held the third largest number of seats in the previous Knesset was destroyed by the rise of Kadima failing to win a single seat in the Knesset. The left wing party Meretz managed to win 5 seats (down from 6 in 2003) despite Labor’s political realignment towards the social democratic left.

Kadima has reached a coalition deal with Labor, Shas and the Pensioners Party giving the government a total of 67 MKs, a majority of 7 in the 120 Knesset. Labor receives seven ministries including Defence, Education and Infrastructure, Shas will get four posts including religious affairs and communications whilst the pensioners take the health and new Pensioner Affairs positions. The agreed coalition platorm states that’the territory of Israeli settlement in Judea and Samaria (the West Bank) will be reduced’ and that it will work to shape the borders ‘through negotiation and agreement with the Palestinians on the basis of mutual recognition, previously-signed agreements, the principles outlined in the road map, an end to violence and the disarmament of the terror organizations’. However it states that ‘if the Palestinians do not act in accordance with these conditions in the near term, the government will also take action in the absence of negotiations and an agreement with them, on the basis of a broad national agreement within Israel and a deep understanding with Israel's friends abroad’. The platform also calls for an increase in the minimum wage, expanding the "basket" of subsidized health services, increasing the state budget and instituting educational reforms in cooperation with the teachers' unions.

Furthermore, the government will work to shape the borders "through negotiation and agreement with the Palestinians on the basis of mutual recognition, previously-signed agreements, the principles outlined in the road map, an end to violence and the disarmament of the terror organizations." if the Palestinians do not act in accordance with these conditions in the near term, the government will also take action in the absence of negotiations and an agreement with them, on the basis of a broad national agreement within Israel and a deep understanding with Israel's friends abroad to act to fulfill the obligations and decisions of the outgoing government regarding unauthorized outposts."

Violence Continues: Sucide Attack in Tel Aviv and exchanges of fire over Gaza border

An Islamic Jihad sucide bomber launched a terrorist attack on a crowded falafel restaurant in Tel Aviv on Monday 17th April killing nine and injuring 50 during the Jewish festival of Passover. Islamic Jihad claim that there are 70 more members ready to commit terrorist attacks against Israel. Despite international condemnation Hamas has defended the bombing saying that it was ‘self defence’. PA Interior minister Siad Siyam argued "We are not a great power who can confront the planes and the missiles of the occupation, but our people have the will and the right to defend themselves and to confront as much as they can the arrogances of the occupation," President Abbas has condemned the attack calling it "an act of terror and a despicable act that is also beyond the national Palestinian consensus and causes damage to Palestinian national interests." Israel is holding Hamas ultimately responsible for the attack but is refraining from action against it as not to undermine international pressure on Hamas.

Tensions continue to mount over the Gaza border as the Israeli military and several Palestinian terrorist groups exchange fire over the Gaza border. Since Israel’s withdrawal from the Gaza strip last September groups have been firing primative Qassam rockets over the border. Though crude and inaccurate they have led to deaths and injuries in Israeli towns surrounding the border. Israel has been using artillery to attack positions in the Gaza Strip with the aim of curbing the attacks, however this has lead to the deaths of both terrorists and civilians.

EU and US suspend direct funding to institutions controlled by Hamas

Following the confirmation of the new Hamas cabinet Israel and the International Community have taken steps to alter the way in which they interact with the Palestinian Authority. Israel has broken all formal contacts with Hamas controlled PA institutions and continues to freeze transfers of customs duties and other trans-border taxes that it collects on behalf of the Palestinian Authority however it is now using some of the funds to pay utility bills normally paid by the PA to Israel energy, fuel and water companies. The EU and US have both suspended payment of direct budget support to the Palestinian Authority, as the new Hamas administration has yet to commit to the benchmarks of recognising Israel’s right to exist and ending its support for terrorism that had been set for continuing direct aid. Previously direct support to the PA accounted for 33% of the total aid to the West Bank and Gaza, with the other 67% delivered through NGOs, the UN, World Bank, the Red Cross/ Crescent and other agencies. The EU has stated that it will seek to use these existing agencies and other mechanisms to support the Palestinian people with funds previously allocated to the PA.

EU External Affairs Commissioner Benita Ferrero-Waldner said “we will want to stand by the Palestinian people as we always said and we'll want to help them with their basic needs, that means water, electricity, that means maybe education, that means food aid". Hamas condemned the decisions describing it as ‘blackmail’. Russia, Qatar and Iran have since pledged funds directly to the PA. French President Jacques Chirac has called for the creation of a World Bank fund to pay the salaries of Palestinian officials at a meeting with President Abbas.