Israel's Netanyahu finalises cabinet lineup for vote

Israeli Prime Minister Benjamin Netanyahu was preparing on Thursday to present his proposed government for the approval of parliament, where his coalition commands a razor-thin majority.

Netanyahu's new administration marks a shift to the right by giving increased prominence to Naftali Bennett's far-right Jewish Home, which opposes a Palestinian state and strongly backs settlement activity.

The move looks likely to complicate Israel's already damaged relationship with the Palestinians and further strain ties with the international community.

After two months of coalition horsetrading, Netanyahu was to present his government for a vote at the Knesset in a session which begins at 1600 GMT.

The lineup is dominated by rightwing and religious parties and commands a slender majority of 61 of the parliament's 120 seats, with commentators warning it was vulnerable to the slightest head cold or whim of a disgruntled MP.

Netanyahu's five-party alliance was built over weeks of intensive negotiations which saw him forced to hand out senior ministerial portfolios to coalition partners in a move which has fostered resentment in his own Likud party.

On Thursday, Netanyahu was putting the finishing touches on his new administration by allocating portfolios and the chairmanship of Knesset committees to Likud.

- 'No Palestinian state' -

On the eve of the March 17 election, Netanyahu promised there would be no Palestinian state on his watch, in remarks which triggered a diplomatic backlash.

Although he has since sought to backtrack, reviving the peace process is unlikely to be a priority for his new cabinet, which features several ministers bent on expanding settlement construction on land that the Palestinians want for a future state.

One is the justice minister designate, Ayelet Shaked of Jewish Home, who has drawn fierce criticism for her outspoken views on the Palestinians and her attempts to advance legislation criticised as anti-democratic.

As the parliamentary vote approached, the allocation of portfolios in the Likud was beginning to take shape.

Defence Minister Moshe Yaalon was to keep his portfolio, as was Yisrael Katz, who has served as transportation minister since Likud won the 2009 election.

Katz would also receive the intelligence portfolio, which was formerly held by Yuval Steinitz, who would become energy minister and also continue to coordinate Israel's position on Iran and its nuclear programme, the party said.

Netanyahu confidant Ofir Akunis will be a junior minister in the ministry of communications, which will be headed by the prime minister himself, a party spokesman said.

Outspoken Miri Regev was named culture and sports minister, and hardliner Danny Danon, who was fired as deputy defence minister during the summer war with Gaza militants, received the science, technology and space portfolio.  

Yariv Levin was named tourism minister, with his responsibilities including coordination between the government and the Knesset.

Druze Likud lawmaker Ayoub Kara, who warned of "surprises" if he did not become minister, was taken to hospital from the Knesset after collapsing from fatigue and stress. His condition was reportedly improving.

Since Avigdor Lieberman relinquished his position of foreign minister and dropped a political bombshell by withdrawing his hardline anti-Arab Yisrael Beitenu from the coalition talks, Netanyahu has kept the foreign affairs portfolio for himself.

Attorney General Yehuda Weinstein meanwhile paved the way for Arye Deri, head of the ultra-Orthodox Shas party, to be appointed economy minister.

Deri was imprisoned in 2000 for two years for corruption and breach of trust, felonies he committed when he was interior minister.

Weinstein opined there was no formal legal obstacle for Deri to serve as minister, but warned it would be "difficult" to defend such an appointment, were it challenged in a petition to the High Court.

The coalition groups Likud, which won 30 seats in the election, with the centre-right Kulanu (10 seats), Jewish Home (eight) and the two ultra-Orthodox parties, Shas (seven) and United Torah Judaism (six).