MK Naftali Bennett, who chairs the Yamina party, has declared his opposition to the fulfillment of a central demand by United Arab List (Ra'am) chair MK Mansour Abbas.
As a condition for his party's support of the proposed minority government, Abbas has demanded the cancellation of the Kaminetz Law, which allows administrative enforcement of laws against illegal construction and increases the severity of punishment for these crimes.
Sources involved in the coalition talks have claimed that Israeli Prime Minister Benjamin Netanyahu and those close to him are pressuring Abbas to stick to his guns on the Kaminetz Law and demand it be canceled, knowing that Bennett will not agree to such a demand. Netanyahu has promised Abbas that the illegal Bedouin settlements in southern Israel will be normalized.
Earlier on Wednesday, Yesh Atid Chairman MK Yair Lapid asked Yamina's leaders to agree in principle on the formation of a government, so that he would be able to tell outgoing Israeli President Reuven Rivlin that he "has succeeded" at the task.
However, Bennett and his number two, MK Ayelet Shaked, refused this demand, insisting on first solving the disagreements between the parties.
Lapid's opportunity to form a coalition expires at midnight between Wednesday, June 2, and Thursday, June 3.