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Netanyahu’s rhetoric – particularly his apparent reneging on support for a two-state solution – will potentially have negative ramifications for Israeli-US relations, particularly with an Obama administration that has made clear its desire to see Israelis and Palestinians hammer out their differences through negotiations. Given Netanyahu’s relations with US President Barack Obama already at a nadir, his revelation rejecting a two-state solution is sure to exacerbate the situation even more. Netanyahu will now have to articulate some alternative plan for managing the conflict with the Palestinians. Improving Palestinians’ living conditions and implementing reforms that help spur economic growth must be a part of any such plan.Another major change is the almost certain incorporation of Shas and United Torah Judaism into the government coalition. The absence of these two parties in the previous government perhaps facilitated its single greatest success – the ending of ultra-Orthodox men’s entitlement to opt out of military service, while their less-observant peers were obligated to serve three years in the IDF. With the return of Shas and UTJ, there is a real danger that, not only will ultra-religious men be allowed once again to skirt military service, they will thereby succeed in resisting integration into mainstream Israeli society – particularly the labor market. Transforming the fast-growing, overwhelmingly poor haredi population into an economically productive segment of society, that contributes to economic expansion instead of being a drain on it, is one of the main challenges facing the State of Israel in the next decade.Also of concern is an expected resurgence of attempts to weaken the autonomy and independence of the Supreme Court. The Likud’s Yariv Levin, a longtime proponent of increasing the Knesset’s power vis-à-vis the court, is already talking about changing the judge appointment process, so that lawmakers will be able to decide who becomes a Supreme Court justice.Netanyahu has in the past opposed encroachment on the court’s autonomy, but now, with the right-wing constituency so integral to his support base, Netanyahu might be less likely to confront Levin and his supporters. A strong, sometimes overly activist Supreme Court is a price worth paying to avoid a situation in which governments that are so heavily dominated by right-wing parties trample the rights of minorities in a “tyranny of the majority.”So, while it may appear that little has changed since the last elections, this is only an illusion. When it is dispelled, it reveals a new, potentially volatile era of deteriorating relations with the US administration, a reversal of positive steps toward the integration of the haredi population into Israeli society, and new attacks on the autonomy of the Supreme Court – not to mention resuming the search for an elusive peace with our neighbors.