Israel’s elections — held in September for the second time this year — are stuck in stalemate following inconclusive results. Prime minister Benjamin Netanyahu has been asked to form the government but, according to media reports, he may fail to do so. Netanyahu is scheduled to meet this week with his main rival, former military chief Benny Gantz of the Blue and White Party. Both will try to cobble together a so-called national unity government. If they fail to strike a deal, will a third round of elections become necessary?
This is just one of many questions that hover over Israel. Others concern the economic implications of the elections. The country, which has long been lauded as a “start-up nation” focused on innovation and entrepreneurship, faces several economic challenges. Among them: How will Israel deal with high inequality and lagging productivity? What should be done about poverty and rising housing costs? And if the world economy slides into a recession, as many signs seem to indicate, how should Israel respond?
