Benny Gantz and Avigdor Lieberman work on forming Israeli government

Prime Minister Benjamin Netanyahu’s chief rival has opened up powersharing talks with a kingmaker.

Avigdor Lieberman and Benny Gantz meet on Monday. Picture: AFP

Prime Minister Benjamin Netanyahu’s chief rival said on Tuesday that he has agreed with a smaller party to work together to form a new government following elections last week.

The announcement by Benny Gantz, leader of the Blue and White Party, dealt a new setback to Mr Netanyahu as he struggles to hold on to power before his upcoming trial on corruption ­charges.

Mr Gantz said he had a good meeting with kingmaker Avigdor Lieberman, leader of the small Yisrael Beitenu party.

“We discussed questions of fundamental principle and determined that we will work together to assemble a government that will pull Israel out of the political deadlock and avert a fourth round of elections,” he said.

In last week’s election, Israel’s third in under a year, Mr Netanyahu’s Likud party emerged as the largest party, but with his smaller religious and nationalist allies, he secured only 58 seats in parliament, three short of the required 61-seat majority needed to form a new government.

Mr Netanyahu’s opponents, led by Mr Gantz, control a majority of seats. Beyond their shared animosity towards Mr Netanyahu, there are deep divisions between these parties, which include Mr Lieberman’s secular, ultra­nationalist party and the Arab-led Joint List.

Mr Gantz’s announcement with Mr Lieberman marked a step towards unifying anti-Netanyahu forces, although it’s unclear whether they can reach a final agreement, much less a deal with Arab politicians.

Mr Lieberman has in the past branded Arab political leaders as terrorist sympathisers.

“We’ll continue to discuss the details, formulate our common objectives, and move forward,” Mr Gantz said.

On the campaign trail, Mr Gantz had ruled out a partnership with the Joint List, whose support is rooted in Israel’s Arab minority, but after a bruising campaign characterised by personal attacks from Mr Netanyahu and his surrogates, and fearing further deadlock if the country is forced into another election, Mr Gantz has reversed course and left the door open.

After his meeting with Mr Lieberman, Mr Gantz spoke to Joint List leader Ayman Odeh, and other senior Arab politicians. “Gantz repeated his commitment to forming a government that will serve all of Israel’s citizens, Jews and Arabs alike,” his party said.

Mr Netanyahu is desperate to remain as prime minister as he prepares to go on trial next Tuesday. He has been charged with fraud, breach of trust and accepting bribes in connection to a series of scandals that include accepting expensive gifts from wealthy friends and offering to exchange favours with media moguls.

The long-ruling Israeli leader denies any wrongdoing.

Mr Netanyahu’s lawyers have requested a delay in the trial’s start, saying they need more time to review evidence. Prosecutors on Monday opposed any delays.

Israel’s president, Reuven Rivlin, must decide by next week who to choose as the prime minister-designate. The president typically chooses the candidate he deems has the best chance of forming a governing coalition. That is usually the leader of the largest party, in this case Mr Netanyahu, but if he believes Mr Gantz has a better chance, he could give the former military chief the first crack at cobbling together a coalition.

Mr Rivlin’s office announced that he would hold a day of consultations with the eight parties elected to parliament on Sunday before he makes his decision on a prime minister-designate. Each of the parties is to tell him who they support during the consultations.

An endorsement from Mr Lieberman, who had refrained from taking sides during the previous two elections, would increase Mr Gantz’s chances of success.

Mr Lieberman is a former Netanyahu ally who has turned into a tough rival and appears bent on toppling his former mentor.

Mr Lieberman has expressed support for a new bill that would ban indicted politicians from forming a government after an election. If the legislation passes, it could end Mr Netanyahu’s career.

Mr Netanyahu has insisted he won last Monday’s election and accused his opponents of trying to “steal the elections” by aligning with Arab-led parties he claimed were hostile to the state. Last week, he said the Joint List shouldn’t be “part of the equation” of Israeli electoral politics, drawing new charges of incitement and racism from his opponents.

“I promise you, I am not going anywhere,” he said at the weekend.

AP