Netanyahu Faces Emerging Threat as Rival Starts New Party

(Bloomberg) -- A new challenge to Benjamin Netanyahu has scrambled Israel’s electoral map just as the governing coalition verges on collapse.

Former cabinet minister Gideon Sa’ar announced late Tuesday that he was starting a political party to rival Netanyahu’s Likud, which he said has become a “tool” for the prime minister’s interests.

“Today Israel needs unity and stability, Netayanu can’t and won’t be able to provide either,” Sa’ar said after announcing his New Hope party. “The order of the hour is a transfer of power from Netanyahu.”

While Sa’ar was roundly defeated last year in his attempt to unseat Netanyahu in a rare Likud leadership race, he retains a following in the nationalist party. New Hope would win 17 of parliament’s 120 seats if an election were held today, cannibalizing support from an array of parties including Likud, according to a Panels Politics internet poll on Tuesday night published by 103fm radio.

Sa’ar’s entry into the fray could cut two ways. It might offer an alternative to a Netanyahu-led government by reapportioning parliamentary seats if a new election is called.

A parliamentary committee voted Wednesday in a first reading to tentatively set a March 16 date for the national ballot, which would be Israel’s fourth in two years. Three readings would be required for the bill to become law.

Alternatively, a Sa’ar challenge could stabilize the current coalition by encouraging Netanyahu and Defense Minister Benny Gantz to paper over differences on the national budget that have sent the coalition teetering. If they don’t reach a compromise by a Dec. 23 deadline, then the government automatically falls and both men would enter the subsequent election campaign weakened by Sa’ar’s challenge.

A strong electoral showing would be especially important for Netanyahu, who seeks a more pliant coalition that would shield him from prosecution on corruption charges. The poll published Wednesday shows support for Likud dropping to 25 seats from a current 36, and 30 in other recent surveys.

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