Israeli Finance Minister Bezalel Smotrich Resigns in the Wake of Coalition Government Tensions

Israeli Finance Minister, Bezalel Smotrich announced his resignation from the position on Sunday, citing increased tensions within the right-wing coalition government. Smotrich’s resignation, made in the form of a letter to Prime Minister Benjamin Netanyahu, was a response to ultimatums made by Itamar Ben Gvir, leader of the nationalist-religious Jewish Power party, for additional ministerial positions after a return to the government.

In his resignation letter, Smotrich lamented the condition of the coalition, and more particularly the internal strife over the cabinet appointments. Smotrich’s resignation is seen as protest against the internal bickering in the government, which has been brewing in recent weeks.

Despite the dramatic resignation, political analysts do not see Smotrich’s leaving the cabinet as capable of bringing down Netanyahu’s government.

The coalition that in effect rammed through the 2025 national budget in the Knesset last week proved to be resilient, and the resignation will not likely immediately usher in instability. However, Smotrich’s resignation is evidence of underlying divisions that could make the coalition challenging in the future.

The resignation follows the latest in a series of contentious events under Netanyahu’s government. Only this year, in January 2025, Smotrich had briefly resigned his role under the Norwegian Law that allows ministers to resign from parliament to focus solely on their ministerial duties. It was at this time that Smotrich’s move was considered an attempt to contain internal party dynamics because he cleared the way for Otzma Yehudit MK Yitzhak Kreuzer to leave his seat in the Knesset to give way for Smotrich to resume his seat.

The newest resignation follows Smotrich publicly rebuffing government negotiations, including a proposed ceasefire deal during the ongoing war with Hamas. Smotrich had threatened to withdraw his Religious Zionism Party from the government coalition if that deal was taken up, characterizing it as a “hostile” step against national security. His decision served to reflect the entrenched disagreement within the government on how to approach the Israeli-Palestinian conflict and broader national security strategy.

The resignation speaks volumes about Netanyahu’s weak coalition that includes a number of parties with divergent ideologies, in particular concerning security policy and cabinet positions. Jewish Power, which has its leadership in Ben Gvir, has been regarded for a long time as a crucial political ally within Netanyahu’s right-wing government, but constant disputes over share of power have raised a doubt.

In the meantime, whether Smotrich’s resignation has any impact on the wider political landscape remains uncertain, but Netanyahu’s administration is determined that stability in its ruling coalition is preserved, at least in the interim. Politicians will hold their breaths watching for anything further that develops as internal politics remains the determining force behind Israel’s leadership.