Report Published: "Israel Defence & Security Report Q2 2013"
BMI View: Israel's 4.2% budget deficit is likely to drop this year following the elections in Israel on January 22. The incumbent party retained their majority but it was weakened, necessitating a coalition with pro-cuts centrist parties. While this is likely to reduce the deficit, it is unlikely to reduce the likelihood of confrontation with Iran, nor will the pro-peace centrists be able to influence the government's hawkish stance on the Israeli-Palestinian conflict.
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