2 Coalition Agreement between the Alignment and the Likud- 13 September 1984

1.1 A National Unity Government (henceforth: The government) will be formed, with the participation of the Alignment and Likud factions and other factions which choose to join the coalition in accordance with this agreement.

1.2 The government will be founded on the following principles:

1. Equality between the Alignment and the Likud in the number of ministers.

2. Creation of a balance when other factions join, such that neither camp achieves a majority over the other. However, the inclusion of the N.R.P. faction will be at the expense of either of the sides, and will not be considered as upsetting the balance.

3. If a minister should cease to serve as a member of the cabinet for any reason, his party will choose the minister who will replace him.

4. If a minister should cease to serve as a member of the cabinet and no other is chosen to replace him as stipulated in subsection C above, then the side to which the said minister belongs may bring another minister into the cabinet in his place, so that the balance between the two camps is maintained.

1.3 The government will operate according to the guidelines attached to this agreement, which are an integral part of it.

1.4 The government will serve throughout the period for the 11th Knesset, until November 1988.

1.5 For the first 25 months of the government's term of office, Mr. Shimon Peres will be prime minister. Mr. Yitzhak Shamir will be alternate prime minister and foreign minister. During the remaining 25 months, Mr. Yitzhak Shamir will head the government, and Mr. Shimon Peres will be alternate prime minister and foreign minister.

To this end, the Basic Law: The Government will be amended to stipulate the status and powers of the alternate prime minister.

1.6 Should either Shimon Peres or Yitzhak Shamir be unable to perform his task for any reason, his party will choose its representative to take his place and perform his task, with the agreement of the other side.

1.7 Subject to what is stipulated above, the rest of the members of the cabinet will serve in their posts without any changes throughout the entire period of the government's term in office.

1.8 Throughout the entire period of the government's term in office, the prime minister will not wield his authority (under section 21A of the Basic Law: The Government) to dismiss a minister from his post, except with the consent of the alternate prime minister; however, such consent will not be required to dismiss a minister who belongs to the camp headed by the prime minister. The prime minister will wield this authority with regard to a minister belonging to the camp of the alternate prime minister, should the latter request it.

1.9 For the purpose of effecting the exchange of roles as set forth in Para. 1.5 above, Mr. Shimon Peres will resign from his post as prime minister close to the end of the first 25 months of the government's tenure, and the Alignment and the Likud will together recommend to the president of the State to charge Mr. Yitzhak Shamir with forming the government. The new government will be established at the conclusion of the first 25 months.

1.10 Mr. Yitzhak Shamir undertakes to form the government he will lead in accordance with the format stipulated in this agreement.

1.11 The directives in this agreement will also apply to the government which will be formed by Mr. Shamir.

1.12 Twenty-five ministers will serve in the government, twelve from each camp and one minister from the N.R.P.

1.13 The division of ministries, besides that of the prime minister and the alternate prime minister and foreign minister, will be as follows:

1.13 The N.R.P. and Shas [and Morasha] factions will join the government, with each of them to be represented by a minister without portfolio.

The Interior and Religious Affairs portfolios will remain with the prime minister. The prime minister and the alternate prime minister will agree on the distribution of those portfolios within one month.

1.14 A permanent ministerial committee, called the inner cabinet, will be established. It will have ten members, five from each side.

1.15 The inner cabinet is empowered to deliberate and decide on the following issues:

1. Issues within the competence of the ministerial defense committee under the government operating procedures (the inner cabinet will also serve as the ministerial defense committee).

2. The policy, defense, and settlement issues incorporated in the basic guidelines.

3. Any issue - including those issues which the basic guidelines stipulate are to be deliberated by the full cabinet -which the prime minister or the alternate prime minister will wish to raise for deliberation and decision in the inner cabinet.

1.16

1. The decisions of the inner cabinet will have the same force as decisions of the ministerial defense committee; but in para. 41(C) of the cabinet operational procedures, the consent of the alternate prime minister will be required in addition to that of the prime minister.

   In Para. 42 of the cabinet operational procedures, the prime minister will be able to bring the subject for deliberation by the full cabinet only with the alternate prime minister's consent.

2. Should there be disagreements and the inner cabinet not reach a decision on a certain issue, the matter will not be brought before the full cabinet except with the joint agreement of the prime minister and the alternate prime minister.

3. Should an issue be brought up for discussion in the cabinet and the prime minister or the alternate prime minister determine that it is to be discussed in the inner cabinet - the issue will be discussed in the inner cabinet.

1.17 A ministerial economic committee will be established, to be chaired by the finance minister. His deputy will be an Alignment representative.

1.18 A coalition committee will be established to look into changing the electoral system and amending the election laws. The committee will be chaired by an Alignment representative. The electoral system and election laws will not be changed unless both sides agree.

1.19 A ministerial committee will be established to look into which (ministry) the Israel Lands Administration should belong to.

1.20 A ministerial committee will be established to examine the jurisdiction and powers of the Ministry of Economics and Inter-Ministerial Coordination.

1.21 The decisions of the ministerial committees mentioned in paragraphs 1.19 and 1.20 will have the force of recommendations only.

1.22 A deputy minister from the Likud will serve in the Defense Ministry, and will handle those civil issues defined by the defense minister after consultations with him.

1.23 A deputy minister from the Alignment will serve in the Finance Ministry, and will handle issues to be defined by the Minister after consultations with him. 1.24 The Police Ministry will be reestablished.

1.25 The principle of continuity in government decisions will be maintained, and the attorney general's opinion on this issue will be adopted.

1.26 The cabinet operative procedures will be amended to adapt them to this agreement's provisions. The amendments will serve as temporary provisions.

Until the procedures are amended as stated above, the cabinet will decide to consider what is stipulated in this agreement's provisions - insofar as they pertain to its manner of operation, its deliberations, and the way decisions are reached - as binding on these issues, even if the procedures specify otherwise.

Alignment and Likud Knesset members will act in accordance with the coalition operational procedures, as follows:

The coalition executive will not reach a decision on any issue brought before the Knesset or one of its committees, if either of the two factions (Alignment or Likud) objects.

2.2 The coalition executive will comprise six members from the Likud faction and six from the Alignment, as well as one representative from every other faction participating in the coalition.

In the first 25 months, the coalition executive will be chaired by a Likud representative, and an Alignment representative will be his deputy; and in the ensuing 25 months, the chairman will be an Alignment representative, and his deputy will be a Likud representative.

The conclusions reached at coalition executive meetings will be recorded. The coalition executive chairman will convey the conclusions to the coalition faction heads.

2.3 Motions to the Agenda and Private Bills

1. A member of the coalition who wishes to submit a motion to the agenda will first submit it to the coalition executive chairman. The chairman will clarify the position of the appropriate minister. If neither the chairman nor the minister objects to the motion, the motion will be submitted to the Knesset Speaker.

2. A member of the coalition who wishes to submit a private bill will first submit it to the coalition executive for deliberation. The coalition executive will pass on the bill to the appropriate minister, who will make his position known within thirty days. If the minister fails to declare his position within thirty days - the bill will be submitted to the Knesset Speaker. If the minister declares his opposition to the bill, the coalition executive will deliberate and make a final decision on the matter.

   If the chairman, the minister, or one of the factions opposes the bill, the faction of the member proposing the bill has the right to submit the bill to the coalition executive for decision.

3. Members of the coalition factions will vote on motions to the agenda, either regular or urgent, and on private bills, in accordance either with the decision of the coalition executive, or with the statement of the minister replying, if the coalition executive did not have time to discuss them.

2.4 Amending or Altering a Section of a Law

1. A member of the coalition who wishes to amend or alter a section of a bill will notify the committee chairman, or the coalition coordinator on the committee if its chairman is not a coalition member. The chairman or coordinator must then postpone the vote on the section in question. At the end of the committee meeting, the committee's coalition members will meet to decide on the proposal. If the issue under discussion is a section of special importance, the faction of the member proposing to amend or alter the section of the law has the right to demand that the matter be decided by the coalition executive, with the participation of the appropriate ministers.

2. Members of the coalition must vote in favor of bills submitted by the government and may not abstain from voting on any of the three readings of laws submitted to the Knesset by the government.

3. On issues on which the coalition factions have been granted a free vote or the right to abstain - under the Transition Law (Amendment), 1961 the coalition executive will deliberate the matter if any one of its factions so demands.

2.5 A) On the issues listed below, action will be taken as follows:

1. A bill for a Basic Law proposed by a member of Knesset will be treated as a private Knesset bill, as stipulated in Para 2.3 (B).

2. Basic law proposed by the Knesset Constitution, Law and Justice Committee will be enacted upon the consent of both parties.

     B) The right to abstain on issues of conscience or religious conscience will be upheld after consultation in the government or the coalition executive, except for issues concerning the preservation of the religious status quo.

3.1 The addition of other parties to the coalition, and/or the addition of their representatives to the government after it has been approved by the Knesset, will be made jointly and with the mutual consent of -the par-ties to this agreement.

3.2 The preservation of the status quo on religious matters will be ensured and the right to submit private bills on religious matters will be upheld. The date for raising these bills, if submitted, for debate in the Knesset, and the manner of voting on them, will be determined in consultations between the prime minister and the alternate prime minister.

3.3 The level of funding for state and state-religious education, schools, institutions for higher learning, the various religious seminaries, torah institutes, and educational and cultural institutes, will be maintained at its current level, and discrimination against any of the streams of education will be prevented.

If there should be a budget cut - it will be proportional.

3.4 The settlement movements and youth movements will be ensured suitable funding.

3.5 An agreement between a party to this agreement and any other faction will not be binding on the other party to this agreement.

In witness whereof the parties hereby affix their signatures.

____________ Alignment

____________ Likud