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Israel

Cabinet chaos looming over crucial gas deal

October 29, 2015 11:20
Netanyahu 3

By

Anshel Pfeffer,

Anshel Pfeffer

1 min read

The Israeli Prime Minister is set to finalise a controversial new gas deal - but only if a cabinet colleague resigns.

Benjamin Netanyahu has been trying to push through a law that permits an Israeli-American energy partnership to develop offshore natural gas fields in the face of anti-monopoly laws that would normally block such an arrangement.

Anti-trust commissioner David Gilo resigned earlier this year after the government refused to accept his ruling that the proposed deal did not ensure sufficient competition in the energy market.

This week, Economics Minister and Shas leader, Arye Deri, told Mr Netanyahu he was prepared to resign and transfer his powers to the prime minister, a move that would not only allow Mr Netanyahu to overrule Mr Gilo's decision, which still stands, but also avoid putting the issue to a Knesset vote, which he could lose.