Coalition crisis erupts in Knesset as Orthodox parties stall budget process

A coalition crisis erupted overnight between Wednesday and Thursday in Israel’s Knesset after ultra-Orthodox parties refused to support a key procedural vote needed to advance the state budget.

The dispute centers on the proposed split of the Economic Arrangements Law, a critical step required to continue parliamentary debate on the budget. Ultra-Orthodox parties opposed the move as a form of pressure over delays in advancing controversial legislation on military conscription, which directly affects their constituents.

By voting against the measure in the plenary, the religious parties effectively froze the budget process. After hours of uncertainty and internal deliberations, the coalition decided to postpone the vote on splitting the Arrangements Law until next Monday. The delay has already cost the coalition three days of budget discussions in an already compressed legislative timetable.

Coalition officials say negotiations will continue behind the scenes in an effort to reach a compromise with the ultra-Orthodox factions, whose support is essential to breaking the deadlock and keeping the budget process on track.

The overnight crisis also produced unusual scenes in the Knesset chamber. Communications Minister Shlomo Karhi delivered an extended filibuster speech, incorporating numerological “gematria” calculations, drawing laughter and bemused reactions from lawmakers despite the seriousness of the political impasse.

The confrontation comes against the backdrop of a legal opinion issued Monday by Knesset legal adviser Sagit Afik, recommending a broad split of the Economic Arrangements Law. Afik argued that several reforms proposed by the Finance Ministry are not directly tied to the budget and should not be advanced through expedited budget legislation.

Among the reforms singled out were changes to the dairy sector, banking regulations, and a plan to privatize airport management. On the dairy reform, Afik warned of insufficient preparatory work and potential severe economic harm to Israeli producers, particularly small farms. She also questioned the urgency of airport privatization, describing it as a structural reform unsuited to fast-track legislation.

While the Finance Ministry had anticipated some separation between budget items and broader reforms, officials were reportedly surprised by the scope of the legal objections. There is now concern that once removed from the budget framework, some reforms could be delayed indefinitely.

With a crucial vote looming, the coalition faces mounting pressure as it seeks to balance ultra-Orthodox political demands, legal constraints, and the need to pass the state budget on time.