Netanyahu Strikes Deal For Israel Coalition

Israeli Prime Minister Benjamin Netanyahu has struck a deal to form a new coalition government just hours before a midnight deadline.

Mr Netanyahu won the country's March election convincingly but struggled to bring together a coalition - a process complicated when a former ally abandoned him this week.

The new government will rule with a tiny majority, controlling 61 of the 120 parliamentary seats, meaning Mr Netanyahu is likely to find it difficult to push his own agenda.

"Sixty-one is a good number, 61-plus is better," said the prime minister, hinting that he hopes to enlarge the coalition.

The deal was brokered after long talks between Mr Netanyahu's right-wing Likud party and the ultra-nationalist Jewish Home.

Other partners include Kulanu, a centrist party, and two ultra-Orthodox religious parties.

Jewish Home wants to annex parts of the occupied territory that Palestinians want for a state - a policy that could deepen tensions between Israel and foreign allies such as the US.

Likud won 30 seats in the country's election but putting together a government proved tougher than imagined as rival coalition partners fought for cabinet positions.

Mr Netanyahu suffered a setback this week when Foreign Minister Avigdor Lieberman unexpectedly stepped down and said his Yisrael Beitenu party was joining the opposition ranks.

Mr Netanyahu was then forced to look to Jewish Home leader Naftali Bennett, a former aide with whom he has had a rocky relationship.

The pair thrashed out a deal after hours of talks on Wednesday, with Mr Netanyahu calling President Reuven Rivlin to announce the long-awaited deal.

"The negotiations are over," Mr Bennett said on his official Twitter account, adding, "Now we get to work."

Mr Netanyahu had had until midnight - otherwise the president would have been forced to ask someone else to try to form a government.