Reuters/Jerusalem

Benjamin Netanyahu’s formation of one of the most right-wing governments in Israel’s history has fuelled concerns in Europe and the United States about further settlement building and dimming prospects for peace.
But it also has diplomats on edge about wider policy proposals, particularly on social and judicial affairs, where the far-right Jewish Home party, an influential member of Netanyahu’s coalition, is determined to leave its mark.
Ultra nationalist Jewish Home, led by former technology entrepreneur Naftali Bennett, has secured two important cabinet portfolios: the education and diaspora ministry for Bennett and the justice ministry for his number two, Ayelet Shaked.
Shaked, a 39-year-old former software engineer, is a divisive figure in Israeli politics, making outspoken comments against Palestinians while promoting a pro-settler agenda.
Since entering parliament in 2013, she has backed a number of controversial bills, including one that would enshrine Israel as the Jewish nation-state, to the anger of Israel’s 20% Arab minority. Shaked also wants to check the Supreme Court’s power and restrict donations from foreign governments to non-governmental organisations in Israel.
As justice minister, she will be in a position to push those legislative proposals more aggressively, with the NGO and judicial oversight bills expected to move ahead.
For foreign diplomats, that raises as many concerns about the direction Israel is moving in as the expansion of settlements on land the Palestinians seek for a state—a profound, long-standing bone of contention.
“The red lines for us aren’t just about settlements,” said the ambassador of one EU member state.
“When you look at some of the legislation being proposed, it is very worrying. It is anti-democratic and looks designed to shut down criticism. It’s the sort of thing you normally see coming out of Russia.”
US diplomats have flagged their concerns too, while emphasising that they need to wait to see how the legislation pans out. With the narrowest of governing majorities—just 61 seats in the 120-seat parliament—it will be a challenge for Netanyahu to get new legislation approved.
The nation-state bill, perhaps the most contested piece of law in Israel’s recent history, looks unlikely to progress because one member of the coalition, Moshe Kahlon, the leader of the centrist Kulanu party, has an effective veto.
But the NGO and judicial oversight bills have a better chance of advancing, with Avigdor Lieberman, the leader of the far-right Yisrael Beitenu party, a former ally of Netanyahu’s who is now in opposition, likely to support them.
The NGO bill would impose a heavy tax on foreign donations to non-governmental organisations operating in Israel, unless a special defence ministry committee decides otherwise.
“It’s part of a broader effort to limit the political space, to squeeze out opposing views,” said Matt Duss, president of the Washington-based Foundation for Middle East Peace.
“It has very negative connotations. It creates a hostile environment for those who express legitimate criticism and would put Israel in some very bad company.”
In Europe, officials are discussing what steps may be taken against Israel if it continues to expand settlements, a process that continues apace, with tenders for 900 units in occupied East Jerusalem issued this week.
Israelis frequently fret that Europe is going to impose a trade boycott on them. No such action is likely.

Knesset to vote on enlarged cabinet
Israel’s parliament is to vote next week on enlarging the cabinet, Prime Minister Benjamin Netanyahu’s Likud party said yesterday, reportedly to satisfy senior party members demanding portfolios.
After six weeks of intensive post-election negotiations, Netanyahu on Thursday signed a deal with the far-right Jewish Home party, completing his new coalition government.
Media said he had hoped to submit it to parliament for a vote of confidence on Monday, although legally he has until Wednesday to do so.
His slim majority of 61 of the 120 seats in the Knesset was built at the cost of major concessions to his coalition partners, sparking frustration within his own party.
A Likud statement said the Knesset would be asked to vote on Monday to increase the number of cabinet ministers to 20 from its present legal maximum of 18.
“Following the vote Prime Minister Benjamin Netanyahu will begin the process of allocating responsibilities for government ministries and other duties in the government and parliament to members of Likud,” it said.  
Netanyahu informed Israel’s president and the Knesset speaker on Wednesday night that he had hammered together a coalition between Likud and four other parties.
By law he must have his ministers sworn in within seven days of that declaration.  
Newspapers said Netanyahu was concerned that Likud MPs upset at not securing a portfolio in the new government could gang up and vote against the cabinet at the Knesset.