Israel's Netanyahu completes formation of government

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Netanyahu Forms Last-Minute Coalition Government

JERUSALEM (AP) -- Israeli Prime Minister Benjamin Netanyahu on Wednesday completed the formation of a new coalition government, reaching a last-minute deal with a nationalist party just before a midnight deadline.

The late-night deal saved Netanyahu from the unthinkable scenario of being forced from office. But it set the stage for the formation of a narrow coalition dominated by hard-line and religious parties that appears to be on a collision course with the U.S. and other allies.

With a slim majority of just 61 seats in the 120-seat parliament, Netanyahu could also struggle to press forward with a domestic agenda.

After Netanyahu's Likud Party won March 17 elections with 30 seats, it seemed he would have a relatively easy time forming a coalition. But during a six-week negotiating process, the task turned out to be much more difficult than anticipated, as rival coalition partners and members of the Likud jockeyed for influential Cabinet ministries.

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Israel's Netanyahu completes formation of government
Israeli Prime Minister Benjamin Netanyahu Likud party supporters react to exit poll results at the party's election headquarters In Tel Aviv.Tuesday, March 17, 2015. Israelis are voting in early parliament elections following a campaign focused on economic issues such as the high cost of living, rather than fears of a nuclear Iran or the Israeli-Arab conflict. (AP Photo/Oded Balilty)
Israeli Prime Minister Benjamin Netanyahu casts his vote during Israel's parliamentary elections in Jerusalem, Tuesday, March 17, 2015. Israelis are voting in early parliament elections following a campaign focused on economic issues such as the high cost of living, rather than fears of a nuclear Iran or the Israeli-Arab conflict. (AP Photo/Sebastian Scheiner, Pool)
A screen shows an exit poll estimation of the first results of Israel's parliamentary election with Israeli Prime Minister Benjamin's Netanyahu Likud party and Herzog Isaac centre-left Zionist Union neck-and-neck in Tel Aviv on March 17, 2015. AFP PHOTO / JACK GUEZ (Photo credit should read JACK GUEZ/AFP/Getty Images)
KIRYAT YEARIM, ISRAEL - MARCH 17: An Orthodox Jewish man casts his ballot at a polling station on election day on March 17, 2015 in Kiryat Ye'arim, Israel. Israel's general election voting has begun today as polls show on that Chairman of the Zionist Union party, Isaac Herzog stands as the only rival to current Prime Minister Benjamin Netanyahu. (Photo by Lior Mizrahi/Getty Images)
WASHINGTON, DC - MARCH 3: Israel's Prime Minister Benjamin Netanyahu speaks before joint session of Congress, on March, 03, 2015 in Washington, DC. (Photo by Bill O'Leary/The Washington Post via Getty Images)
Israeli Prime Minister Benjamin Netanyahu went neck and neck with Zionist Union Party leader Issac Herzog but ultimately pulled away in the election.
Co-leaders of the Zionist Union party, Israeli Labour Party leader Isaac Herzog (L) and Israeli MP Tzipi Livni, speak to the media in Modiin, near Tel Aviv, on March 17, 2015 as Israelis vote in a close-fought election pitting the centre left against Prime Minister Benjamin Netanyahu who is fighting for his political survival after six years in power. AFP PHOTO / GIL COHEN-MAGEN (Photo credit should read GIL COHEN MAGEN/AFP/Getty Images)
Israeli Prime Minister Benjamin Netanyahu waves as he speaks before a joint meeting of Congress on Capitol Hill in Washington, Tuesday, March 3, 2015. Since Republicans took control of Congress two months ago, an elaborate tug of war has broken out between GOP lawmakers and Obama over who calls the shots on major issues for the next two years. In the course of a few hours Tuesday, House Republicans caved to Obama on Homeland Security funding and immigration. Yet they also antagonized him by giving Israel's prime minister a perch in Congress to rail against nuclear talks with Iran. (AP Photo/Susan Walsh)
Israeli Prime Minister Benjamin Netanyahu looks on as he opens the weekly cabinet meeting at his Jerusalem office on February 1, 2015. AFP PHOTO / POOL / GALI TIBBON (Photo credit should read GALI TIBBON/AFP/Getty Images)
As Israeli soldiers cast early votes in Israel's upcoming election, the outlook for sitting Prime Minister Benjamin Netanyahu is not good. Challengers Isaac Herzog and Tzipi Livni -- whom Netanyahu booted from the government late last year -- and their Zionist Union look likely to win the most seats in Israel's parliament, with Netanyahu's Likud Party about four seats behind.
Israeli Prime Minister Benjamin Netanyahu speaks at the American Israel Public Affairs Committee (AIPAC) Policy Conference in Washington, Monday, March 2, 2015. Netanyahu is seizing the high-profile bully pulpit of the U.S. House to deliver his stern message about the dangers of a nuclear deal that President Barack Obama and U.S. allies might sign with Israel’s archenemy. (AP Photo/Pablo Martinez Monsivais)
TEL AVIV, ISRAEL - MARCH 17: Supporters of Israeli Prime Minister Benjamin Netanyahu celebrate as election results come in at his election campaign headquarters on March 17, 2015 in Tel Aviv, Israel. After the ballot boxes were closed at 10 P.M. Tuesday, exit polls showed the two main contenders, Netanyahu of Likud and Isaac Herzog of the Zionist Union party, were neck and neck with 27 Knesset seats each, with a slight lead for Likud. Netanyahu has announced a 'great victory'. (Photo by Lior Mizrahi/Getty Images)
Members of the anti-Zionist ultra-Orthodox Neturei Karta group, a group that opposes Zionism and the Israeli state, hold signs during a demonstration against Prime Minister Benamin Netanyahu's U.S. visit, in front of the U.S. consulate in Jerusalem, Tuesday, March 3, 2015. (AP Photo/Sebastian Scheiner)
Israeli Prime Minister Benjamin Netanyahu speaks at the American Israel Public Affairs Committee (AIPAC) Policy Conference in Washington, Monday, March 2, 2015. (AP Photo/Pablo Martinez Monsivais)
Capitol Police attempt to move demonstrators, calling for a free Palestine, off of a street near the Capitol in Washington, Tuesday, March 3, 2015, where Israeli Prime Minister Benjamin Netanyahu will address a joint meeting of Congress later in the morning. (AP Photo/Cliff Owen)
Demonstrators calling for a free Palestine march on Capitol Hill in Washington, Tuesday, March 3, 2015, before Israeli Prime Minister Benjamin Netanyahu's address to a joint meeting of Congress. (AP Photo/Cliff Owen)
WASHINGTON, DC - MARCH 3: Anti-Zionist Orthodox Jews protest Israeli Prime Minister Benjamin Netanyahu's address to Congress outside the U.S. Capitol on March 3, 2015 in Washington, D.C. Netanyahu will speak to Congress on Iran's nuclear ambitions and President Obama's emerging deal with Tehran. (Photo by Gabriella Demczuk/Getty Images)
WASHINGTON, DC - MARCH 3: An Anti-Zionist Orthodox Jew protests Israeli Prime Minister Benjamin Netanyahu's address to Congress outside the U.S. Capitol on March 3, 2015 in Washington, D.C. Netanyahu will speak to Congress on Iran's nuclear ambitions and President Obama's emerging deal with Tehran. (Photo by Gabriella Demczuk/Getty Images)
President Barack Obama meets with Israeli Prime Minister Benjamin Netanyahu in the Oval Office of the White House in Washington, Monday, March 3, 2014. Seeking to keep a pair of delicate diplomatic efforts afloat, Obama will personally appeal to Netanyahu to move forward on peace talks with the Palestinians, while also trying to manage Israel's deep suspicion of his pursuit of a nuclear accord with Iran. (AP Photo/Pablo Martinez Monsivais)
President Barack Obama meets with Israeli Prime Minister Benjamin Netanyahu in the Oval Office of the White House in Washington, Monday, March 3, 2014. Seeking to keep a pair of delicate diplomatic efforts afloat, Obama will personally appeal to Netanyahu to move forward on peace talks with the Palestinians, while also trying to manage Israel's deep suspicion of his pursuit of a nuclear accord with Iran. (AP Photo/Pablo Martinez Monsivais)
President Barack Obama and Israeli Prime Minister Benjamin Netanyahu shake hands during their meeting in the Oval Office of the White House in Washington, Monday, March 3, 2014. Seeking to keep a pair of delicate diplomatic efforts afloat, Obama will personally appeal to Netanyahu to move forward on peace talks with the Palestinians, while also trying to manage Israel's deep suspicion of his pursuit of a nuclear accord with Iran. (AP Photo/Pablo Martinez Monsivais)
Israel's Prime Minister Benjamin Netanyahu chairs the weekly cabinet meeting in Jerusalem, Sunday, Feb. 15, 2015. (AP Photo/Abir Sultan)
FILE - In this Dec. 3, 2014, file photo, Israeli Prime Minister Benjamin Netanyahu speaks during a faction meeting at the Knesset, Israel's parliament in Jerusalem. When Prime Minister Benjamin Netanyahu dissolved his unwieldy coalition and called new elections last month, he appeared to be a lock to return to office. But a new center-left alliance has suddenly surged in the polls past his ruling Likud party to become the largest parliamentary faction and turned the March 17 vote into a toss-up. (AP Photo/Sebastian Scheiner, File)
Israeli Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting in his Jerusalem office, Sunday, Feb. 8, 2015. (AP Photo/Sebastian Scheiner, Pool)
On the morning after President Barack Obama's State of the Union speech, House Speaker John Boehner of Ohio, tells reporters that he has asked Israeli Prime Minister Benjamin Netanyahu to address Congress on dealing with terrorism but that he did not consult the White House on the invitation, Wednesday, Jan. 21, 2015, on Capitol Hill in Washington. From left are, Rep. Lynn Jenkins, R-Kansas, House Majority Leader Kevin McCarthy of Calif., House Majority Whip Steve Scalise of La. and Boehner. (AP Photo/J. Scott Applewhite)
Israeli Likud Party supporters react to the exit polls while they wait for the announcement of the first official results of Israel's parliamentary elections on March 17, 2015 at the party's headquarters in the city of Tel Aviv. Israeli Prime Minister Benjamin Netanyahu's rightwing Likud party is neck-and-neck with the centre-left Zionist Union in the general election, exit polls said. AFP PHOTO / MENAHEM KAHANA (Photo credit should read MENAHEM KAHANA/AFP/Getty Images)
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The talks stalled this week when Foreign Minister Avigdor Lieberman, a longtime partner of Netanyahu's, unexpectedly stepped down and announced his secular nationalist Yisrael Beitenu party was joining the opposition.

That left Netanyahu dependent on Jewish Home leader Naftali Bennett, a former aide who has a rocky relationship with Netanyahu. The talks with Bennett stretched throughout the day and well into the night before Netanyahu called President Reuven Rivlin, as required by law, to announce the deal.

Netanyahu had until midnight to speak to Rivlin. Otherwise, the president would have been required to ask another politician to try to form a government.

The Jewish Home party is linked to the West Bank settler movement. It opposes peace moves toward the Palestinians and has pushed for increased settlement construction on occupied lands - a policy that is opposed by the U.S. and European countries.

His other partners include Kulanu, a centrist party focused on economic issues, and two ultra-Orthodox religious parties.

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