After a little over one year of gridlock and bickering, on December 2 2014 Prime Minister Netanyahu fired his Minister of Finance Yair Lapid
and his Minister of Justice Tzipi Livni and on December 3 called for new elections as soon as possible. New elections will be held on March 17 2015. In a televised speech on Tuesday December 2 Netanyahu stated that "frequent elections are not a good thing, but a government with no governability that includes ministers who are working against it from the inside, is much worse." Offering scathing criticism of Lapid and Livni and stating that they "harshly attacked" him,
Netanyahu claimed that from the very begining that this "was a contrarian government" that was "forced on [him]."
The cabinet had disagreements about many issues, most notably the defense budget, a tax break for first time home-buyers and new settlements. Netanyahu and Lapid agreed on a state budget that left neither one of them satisfied on September 24 after long negotiations. The announcements of new settlements to be built following Operation Protective Edge were met not only with international criticism but domestic criticism as well from Minister of Justice Livni, which Netanyahu did not appreciate.
Netanyahu's 2014 controversial Jewish nation-state bill was also opposed by Livni and Lapid but approved by the rest of his cabinet. Livni and Lapid, along with international critics argued that enshrining in law Israel's place as a Jewish state would have discriminatory consequences for Israel's Arab citizens who make up 20% of the population.
According to experts close to the cabinet, this "Jewish nationhood" bill was the centerpiece of the implosion of the 33rd government. Controversial aspects of this bill include removing Arabic as one of the official languages of Israel. Former Israeli President Shimon Peres stated that this bill would "destroy Israel’s democratic status at home and abroad."
On December 3 after a preliminary reading, the Knesset
approved a measure that disolved the Knesset. This legislation gives the Knesset three to five months to prepare for new elections, scheduled for March 17 2015. The Knesset officially voted to disolve itself on Monday December 8.
Tzipi Livni and her Hatnuah party joined forces with Issac Herzog and the labor party to run on a joint ticket in opposition to Netanyahu's government in the March 2015 elections. On December 10 2015 it was revealed that the two had agreed to run on a joint ticket, and had also agreed on a rotation system if they should win, in which Herzog would serve as Prime Minister for the first two years while Livni served as President and then the two would switch for the second half of their term. The decision to form a joint ticket was made after deducing that it would increase the combined representation in the Knesset, allowing the coalition to get more done.