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Political struggle of far-right ally Smotrich shows faultline in Netanyahu coalition - Headlines news and analysis from Global Banking & Finance Review
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Political struggle of far-right ally Smotrich shows faultline in Netanyahu coalition

Published by Global Banking & Finance Review

Posted on August 7, 2026

5 min read

· Last updated: August 9, 2026

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Netanyahu Coalition Faces Major Test as Smotrich Battles for Survival

Smotrich's Political Struggles and Impact on Netanyahu's Coalition

By Emily Rose

BEIT EL, West Bank, Aug 7 (Reuters) - Israel's far-right Finance Minister Bezalel Smotrich faces a fight for political survival in elections in October after angering his fellow West Bank settlers by voting not to punish ultra-Orthodox Jews who refuse to serve in the military.

The political travails of Smotrich are a sign of how tricky it will be for Prime Minister Benjamin Netanyahu to shepherd allies in his quarrelsome coalition through the October 27 election, Israel's first since the start of the Gaza war.

Background: Smotrich and the Religious Zionism Party

A lifelong settler in the Israeli-occupied West Bank, Smotrich, 46, leads the Religious Zionism party, which opposes a Palestinian state and argues that Jews' claim to land between the Jordan River and Mediterranean Sea arises from the Bible.

Several Western countries have banned him from entering over accusations he supports violence by settlers against Palestinians in the West Bank, which he and the Israeli government reject.

Smotrich's Leadership Style and Achievements

Though less overtly pugnacious than the other main far-right cabinet member, Security Minister Itamar Ben-Gvir, with whom he is often compared, Smotrich has used his time in office to ramp up settlement building. He defends the cause with a caustic turn of phrase and is still lionised by many in the movement.

"I think his achievements have been off the charts," said Chaim Silberstein, a settler in Beit El, where Smotrich grew up and where new apartment blocks reflect the expansion he has championed.

Settler Backlash Over Military Draft Law

But some one-time backers have been infuriated by his support last month for a law that would prevent the arrest of ultra-Orthodox Jews for avoiding the military draft.

"I don't have a political home today," said Sarel Halperin, 30, from the West Bank settlement of Alon Shvut, who voted for Religious Zionism in 2022. "If we keep doing this for years we won't have reservists and we won't have an army and we aren't a country that can exist without an army."

Calculated Decision Amid Coalition Tensions

CALCULATED DECISION

Religious Zionists such as Smotrich and his followers — colloquially known as "knitted kippahs" for the skullcaps worn by Orthodox Jewish men with modern dress — believe Judaism and nationalism go hand in hand. That causes political friction with some ultra-Orthodox communities in traditional dress, whose sons have typically eschewed military service for biblical study.

Parties representing both groups are part of Netanyahu's coalition, which has struggled to avert a split over the issue since a Supreme Court ruling in 2024 that an exemption to the draft for religious study was unlawful.

The bill that passed in parliament last month would have prevented arrests of ultra-Orthodox Jews who avoid the draft, but has also been blocked by the Supreme Court.

Smotrich's Stance and Public Response

Smotrich says the ultra-Orthodox should be obliged to serve, but that arresting them would create division. He defended the position at a settler event last month, where attendees heckled him while shouting out numbers of dead soldiers.

"Arrests don't bring ultra-Orthodox to the army...they just make Jews fight one another in the streets," he responded. "We must enlist the ultra-Orthodox but it must be with a process and consensus."

Gayil Talshir, political science lecturer at the Hebrew University of Jerusalem, said Smotrich's position represents a calculated decision to avoid a firm stance against the exemption that would have forced him to quit the coalition.

Loss of Support and Future Prospects

Criticism from Former Allies

'NO LONGER REPRESENTS VALUES'

Remaining in government allowed him to advance his goals and push settlement expansion. But it has come at a cost in support from some who consider the issue fundamental.

Smotrich "no longer represents the values of Religious Zionism" and has "sold this country to the ultra-Orthodox," said Shvut Raanan, a 33-year-old lawyer who grew up in the West Bank and has campaigned to end the exemption from military service.

Her husband has served hundreds of days in the reserves since the October 7, 2023 Hamas-led attacks on Israel that led to the Gaza war, and she said many households are crumbling under such strain.

Implications for the Far-Right Bloc

The issue has not been as big a problem for Ben-Gvir, the other main far-right settler cabinet member, whose voters are less motivated over the exemption, said Talshir.

Smotrich's party now holds seven seats in the 120-seat parliament, after running in 2022 on a combined list with Ben-Gvir's party that jointly won 14.

Opinion polls lately indicate Religious Zionism would struggle to breach the minimum 3.5% of the vote needed to win any seats in October.

Netanyahu's Strategy Moving Forward

Still, with every seat likely to count in forming the next government, Talshir said she expected Netanyahu would try to arrange another party merger on the far right for Smotrich, to ensure his ally makes it through.

(Reporting by Emily Rose, Rami Amichai, Ronen Zvulun, Dedi Ohayoun, Ilan RosenbergEditing by Tom Perry and Peter Graff)

Key Takeaways

  • Smotrich angered parts of the settler movement by supporting legislation banning arrests of ultra‑Orthodox draft evaders, prompting accusations he betrayed Religious Zionist values (timesofisrael.com).
  • The Knesset passed a law in mid‑July 2026 granting immunity from arrest to Haredi draft dodgers until January 2027, undermining IDF manpower at a time of war (timesofisrael.com).
  • The controversy highlights internal tensions in Netanyahu’s coalition between Religious Zionists, ultra‑Orthodox factions, and security‑concerned settler supporters, raising questions about cohesion heading into the October election (investing.com).

References

Frequently Asked Questions

What is causing rifts within Netanyahu's coalition?
Disagreements over the military draft exemption for ultra-Orthodox Jews are dividing Religious Zionists and ultra-Orthodox parties.
How does Smotrich view settlement expansion?
Smotrich has prioritized settlement building in the West Bank and is supported by many settlers for this stance.
What was the recent law regarding the ultra-Orthodox draft?
The law aimed to prevent arrests of ultra-Orthodox Jews who avoid the military draft, but was blocked by Israel's Supreme Court.

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