Cracks widen in Netanyahu's coalition

Israel's coalition government, led by Binyamin Netanyahu, appears to be in danger of fracturing over the gridlocked peace process and a controversial "loyalty law". As Israel announced the building of 238 more housing units in annexed East Jerusalem, further complicating US efforts to revive stalled peace negotiations, it emerged that Ehud Barak, the Labour leader, is predicting that the government will collapse. The party's social affairs minister, Isaac Herzog, has also been threatening to quit unless direct talks with the Palestinians are reopened by the end of this month. Although the two areas where new building has been announced were not part of the 10-month freeze on building in the West Bank, which recently expired, Israeli building in neighbourhoods of East Jerusalem–which Palestinians want to be the capital of a future state–is deeply controversial. The stability of Netanyahu's government is being threatened on two fronts. Its right opposes any extension to the building moratorium. And Labour may pull out unless there is progress in the peace talks–unlikely if the moratorium is broken.