Economic – Key date: July 14 Last year’s article predicted no significant problems on this front due to Netanyahu’s decision to pass a two-year budget. That proved correct, but the prime minister had to put up with populist MKs in his party who gave him headaches when they joined up with Shas on initiatives like a proposed sales tax on fruits and vegetables.The precedent Netanyahu set by giving in whenever he was faced with disputes on the budget could cause political problems for the prime minister as elections come closer and MKs’ feelings of independence inevitably increase. Knesset Finance Committee chairman Moshe Gafni and Labor MKs will fight against a bill mandating another two-year budget that Elkin wants to pass before the summer recess begins July 14.Religion and state – Key date: October A year ago, speculation focused on how Israel Beiteinu, Shas and United Torah Judaism could find compromises on conversion and civil unions for couples seeking to be legally recognized without an Orthodox ceremony. In a prediction that turned out correct, the article said, “The government’s survival could depend on haredi rabbis making compromises, which is never a good risk to take.”That is still correct now, when it is closer to the deadline Israel Beiteinu set for passing a proposal to follow up last month’s passage of civil unions for non-Jews with similar legislation for Jews who cannot marry according to Jewish law. The deadline is in August, which means it won’t be dealt with until October, after the holidays end. Deadlines for reaching a compromise on conversion have come and gone, but the issue will continue to cause problems in the coalition.Kadima has worked hard to embarrass Israel Beiteinu leader Avigdor Lieberman in the Russian-language press over his failure to advance his civil agenda and allowing the passage of Sunday’s vote to move a proposed emergency room at Ashkelon’s Barzilai Hospital because ancient graves were found there. If Lieberman needs an excuse to quit the coalition, this could be a convenient one.Legal – Key date: UnknownThis has not changed since last year, even though the attorney-general has. New Attorney-General Yehuda Weinstein holds the key to the stability of Netanyahu’s government.If Weinstein decides to indict Lieberman, he will quit, even though he is not legally required to do so. Lieberman has said that Israel Beiteinu would remain in the coalition. But if the party’s future is in doubt, its MKs who are notorious for being conveniently monolithic could suddenly discover their independence.All indications are that Deputy Foreign Minister Danny Ayalon would hold the portfolio for three months under Netanyahu, but after that, the prime minister would have to appoint a replacement for Lieberman, which could cause new political problems or create an opportunity to bring in Kadima.
Politics – Key date: April 15 Last year’s article incorrectly predicted that the biggest challenge for the coalition would be a Labor leadership race that, by the party’s bylaws, had to take place by April 10, 2010 and could have unseated Labor chairman Ehud Barak. But Barak crushed Labor’s rebellion and succeeded in delaying the race until October 2012.Despite speculation that Barak would cause Netanyahu the same problems he gave Olmert, the two men have gotten along extremely well, and Barak has acted as Netanyahu’s top salesman to the world. Netanyahu even brought Barak to Washington this week in an unsuccessful effort to defuse tensions with Obama.There are no internal primaries set in any of the coalition parties. But Netanyahu could face annoyances from the Likud central committee when rightists try to pass a proposal requiring construction in Judea and Samaria to restart when the 10-month moratorium ends September 25.That central committee meeting was supposed to take place last Thursday, and a new date for it must be set by April 15.Diplomatic – Key date: September 25 No substantial diplomatic test for the coalition was expected at this time last year, until a Palestinian election was set to be held in January that could have highlighted differences among coalition parties about how to advance the peace process. That vote did not take place, but problems on this front were obviously plentiful.As predicted, differences between Lieberman on the Right and Barak on the Left did not flare up. Nevertheless, Netanyahu discovered that his range of flexibility on diplomatic issues would not be between the views of his foreign and defense ministers, but between the sympathetic view of US Vice President Joe Biden while he is happy and the rigidity of Obama when he is angry, or between US Secretary of State Hillary Clinton’s praise in one conversation and her condemnation in another.Labor ministers are threatening to force the party to bolt the coalition if Netanyahu keeps his promise to restart construction in Judea and Samaria after the moratorium ends September 25.That threat could be advanced as pressure increases from Washington to extend the freeze now.Netanyahuwas expected to convene the inner security cabinet Thursday night todecide how to respond to Obama’s latest demands. Even if Netanyahupartially yields to pressure from the president, the right-wing partiesin the coalition have so far proven to be understanding of thesituation he is in, so chances are that they will continue their trackrecord of not flexing their muscles.How Netanyahu handles allthese challenges will determine whether the second year of hisgovernment will be, as Dickens writes, “the age of wisdom” or “the ageof foolishness,” “the spring of hope” or “the winter of despair.”