Israel moves closer to third elections in a year

TEL AVIV - Israeli kingmaker Avigdor Lieberman refused to back either Benjamin Netanyahu or rival Benny Gantz for prime minister Wednesday, pushing the country closer to its third general elections in a year.

The nationalist, whose Yisrael Beitenu party holds the balance of power with eight seats in the parliament, said neither man had done enough to convince him ahead of a midnight deadline for Gantz to form a government.

"As things stand, we are on our way to new elections," he said.

Incumbent leader Netanyahu's right-wing Likud party and former military general Gantz's centrist Blue and White coalition were nearly deadlocked after September elections, with neither able to command a majority in Israel's 120-seat parliament.

The two have been desperately courting Lieberman's eight seats to break the impasse.

But the former defence minister has been wary of backing Gantz, as his government would need at least the tacit support of the Arab Joint List to govern, something the anti-Palestinian right winger opposes.

He also accuses Netanyahu of being captive to the whims of ultra-Orthodox Jews, who make up around 10 percent of the population, objecting to the community's exemption from military service.

Lieberman had been seeking a unity government of his party, Likud and Blue and White, but the talks faltered.

"Both are responsible," Lieberman said of Gantz and Netanyahu. "I have done everything in my power to form a unity government."

"If we are dragged to new elections it will be because of a lack of leadership."

Gantz has until 11:59 pm (21:59 GMT) Wednesday to cut a deal. If he fails, lawmakers have 21 days to propose a candidate capable of forming a majority to the president. If that period passes without a breakthrough, a third election becomes inevitable.

Netanyahu and Gantz traded blame over the faltering talks on Wednesday ahead of the midnight deadline. Netanyahu was first given 28 days to form a coalition government but failed, so President Reuven Rivlin granted Gantz a similar timeframe.

Tweets from the pair on Wednesday alluded to the talks with Lieberman breaking down.

"Unfortunately, during our meeting last night, Benny Gantz refused to accept the conditions put by Avigdor Lieberman, that is, to accept the President's solution that, as Prime Minister, I will be the first in rotation," Netanyahu said.

Gantz for his part accused Netanyahu of intransigence.

"Benjamin Netanyahu is rejecting unity and will do everything possible to drag us into elections for the third time," Gantz tweeted.

With the hours ticking down, Gantz pledged to continue seeking a deal.

"Any attempt to predict the outcome of Benny Gantz's mandate is a suicide mission," columnist Ben Caspit wrote in the Maariv daily Wednesday.

"The path towards establishing a government in Israel has never been at a greater impasse."

Netanyahu, who has been in power since 2009, is also facing corruption allegations that could threaten his political career.

Attorney General Avichai Mandelblit is due to decide by December whether to charge Netanyahu over a series of graft accusations he denies.

An indictment might permanently damage Netanyahu's support, whereas a reprieve could give him a new lease of life.

All sides said they were committed to avoiding new elections, but Caspit said he thought that was unlikely.

"We are going to need a miracle to avert a third election - either that or a bold, surprising and courageous decision by one of the players."