According to Israeli law a new government has 100 days to pass a budget. In August 2020, a compromise law was passed that extended the deadline for another three months. That deadline finally expired and the Knesset disolved on December 22, 2020. A new election, the fourth in less than two years, will be held on March 23, 2021.
In the first of what are likely to be a number of shifts in the constellation of parties, Gideon Sa’ar left Likud to form his own party called
New Hope. Two other members of the Likud, Michal Shir and Sharron Haskel joined Sa’ar.
Ron Huldai, the mayor of Tel Aviv-Jaffa announced in December 2020 he was forming the Hayisralim (“The Israelis”) Party, which has been variously described as left-wing and center-left. The new party was bolstered by the decision of Justice Minister Avi Nissenkorn to leave Kahol Lavan to join Huldai.
Sources: Jonathan Lis and Chaim Levinson, “The Knesset Dissolves; Israelis Will Return to the Polls on March 23,” Haaretz, (December 23, 2020);
Gideon Sa’ar, Wikipedia;
Raoul Wootliff, “Tel Aviv mayor to form new left-wing party to run in March elections,” Times of Israel, (December 28, 2020);
“Veteran Tel Aviv mayor Ron Huldai launches new center-left party, ‘The Israelis,’” Times of Israel, (December 29, 2020);
Jonathan Lis, “Tel Aviv Mayor Announces New Party Running in Upcoming Israeli Election,” Haaretz, (December 30, 2020);
Yossi Verter, “The Slow Fraying of Gantz’s Party Has Turned Into a Panicked Flight,” Haaretz, (December 30, 2020).