Early life and career
Netanyahu was born in 1949 in
Israel, to an Israeli-born mother, Tzila Segal (28 August 1912 – 31 January 2000) and a
Warsaw-born father, Prof.
Benzion Netanyahu (1910–2012), the middle of three children. He discovered via a DNA test that he is of part
Sephardi Jewish ancestry.
 He was initially raised and educated in
Jerusalem, where he attended Henrietta Szold Elementary School. A copy of his evaluation from his 6th grade teacher Ruth Rubenstein indicated that Netanyahu was courteous, polite, and helpful; that his work was "responsible and punctual"; and that Netanyahu was friendly, disciplined, cheerful, brave, active and obedient.
Between 1956 and 1958, and again from 1963 to 1967,
 his family lived in the United States in
Cheltenham Township, Pennsylvania, a suburb of
Philadelphia, where he attended and graduated from
Cheltenham High School and was active in a
debate club. To this day, he speaks fluent English, with a noticeable
After graduating from high school in 1967, Netanyahu returned to Israel to enlist in the
Israel Defense Forces. He trained as a combat soldier and served for five years in an elite special forces unit of the IDF,
Sayeret Matkal. He took part in numerous cross-border assault raids during the 1967–70
War of Attrition, rising to become a team-leader in the unit. He was wounded in combat on multiple occasions.
 He was involved in many other missions, including
Operation Inferno (1968), and the rescue of the hijacked
Sabena Flight 571 in May 1972 in which he was shot in the shoulder.
After completing his army service in 1972, Netanyahu returned to the United States in late 1972 to study architecture at the
Massachusetts Institute of Technology (MIT). He returned to Israel in October 1973 to serve in the
Yom Kippur War in the Sayeret Matkal commando unit.
 While there, he fought in special forces raids along the
Suez Canal against the Egyptian forces, before leading a commando attack deep inside Syrian territory, whose mission remains classified today.
Benjamin Netanyahu, on Sayeret Matkal, (Maariv 2007)
I have great respect for the unit. This is a unit that changes the reality of our lives even though its actions are a secret. Although it is a small unit, it influences all branches of the military ... My service in the unit strengthened my understanding of the risks involved behind approving operations and the risks that fighters are taking on. It is tangible and not theoretical for me.
He then returned to the United States and under the name Ben Nitay, completed an
 in architecture
 in February 1975 and earned an
 degree from the
MIT Sloan School of Management in June 1976. Concurrently, he was studying towards a doctorate
 in political science,
 until his studies were broken off by the death of his brother in
At MIT, Netanyahu studied a double-load, completing an
SM (that would normally take four years) in only two and a half years, despite taking a break to fight in the Yom Kippur War, and while simultaneously completing a thesis in a graduate course at Harvard.
 Professor Groisser at MIT recalled: "He did superbly. He was very bright. Organized. Strong. Powerful. He knew what he wanted to do and how to get it done."
At that time he changed his name to Benjamin Ben Nitai (Nitai, a reference to both
Mount Nitai and to the eponymous Jewish sage
Nittai of Arbela, was a pen name often used by his father for articles).
 Years later, in an interview with the media, Netanyahu clarified that he decided to do so to make it easier for Americans to pronounce his name. This fact has been used by his political rivals to accuse him indirectly of a lack of Israeli national identity and loyalty.
In 1976 Netanyahu's older brother
Yonatan Netanyahu was killed. Yonatan was serving as the commander of Benjamin's former unit, the Sayeret Matkal, and died during the
counter-terrorism hostage-rescue mission Operation Entebbe in which his unit rescued more than 100 mostly Israeli hostages hijacked by terrorists and flown to the
Entebbe Airport in Uganda.
Netanyahu studied at MIT between 1972 and 1976, earning
In 1976 Netanyahu graduated near the top of his class at the MIT Sloan School of Management,
 and was headhunted to be an
 for the
Boston Consulting Group in Boston, Massachusetts, working at the company between 1976 and 1978. At the Boston Consulting Group, he was a colleague of
Mitt Romney, with whom he formed a lasting friendship. Romney remembers that Netanyahu at the time was: "[A] strong personality with a distinct point of view", and says "[w]e can almost speak in shorthand... [w]e share common experiences and have a perspective and underpinning which is similar."
 Netanyahu said that their "easy communication" was a result of "B.C.G.'s intellectually rigorous boot camp".
In 1978, Netanyahu appeared on Boston local television, under the name of 'Ben Nitai', where he argued: "The real core of the conflict is the unfortunate Arab refusal to accept the State of Israel ... For 20 years the Arabs had both the West Bank and the Gaza Strip, and if self-determination, as they now say, is the core of the conflict, they could have easily established a Palestinian state."
In 1978, Netanyahu returned to Israel. Between 1978 and 1980 he ran the Jonathan Netanyahu Anti-Terror Institute,
 a non-governmental organization devoted to the study of terrorism; the Institute held a number of international conferences focused on the discussion of international terrorism. From 1980 to 1982 he was director of marketing for Rim Industries in Jerusalem.
 During this period Netanyahu made his first connections with several Israeli politicians, including Minister
Moshe Arens, who appointed him as his Deputy Chief of Mission at the Israeli Embassy in Washington, D.C., a position he held from 1982 until 1984.
 Between 1984 and 1988 Netanyahu served as the
Israeli ambassador to the United Nations.
 Netanyahu was influenced by Rabbi
Menachem M. Schneerson, with whom he formed a relationship during the 1980s. He referred to Schneerson as "the most influential man of our time".
It was while living in New York during the 1980s, that Netanyahu became friends with
Fred Trump, the father of
Early political career, 1988–96
Minister of Science and Technology
Minister of Housing and Construction
Minister of Foreign Affairs
Minister of Finance
Minister of Economic Strategy
Minister of Pensioner Affairs
Minister of Health
Minister of Foreign Affairs
Minister of Public Diplomacy and Diaspora Affairs
Minister of Foreign Affairs and
Minister of Public Diplomacy and Diaspora Affairs
Minister of Communications
Minister of Pensioner Affairs
Minister of Economy,
Minister of Health and
Minister of Regional Cooperation
Netanyahu (right) with Sorin Hershko, a soldier wounded and permanently paralyzed in
, 2 July 1986
Prior to the
1988 Israeli legislative election Netanyahu returned to Israel and joined the
Likud party. In the Likud's internal elections, Netanyahu was placed fifth on the party list. Later on he was elected as a Knesset member of the 12th Knesset, and was appointed as a deputy of the foreign minister
Moshe Arens, and later on
David Levy. Netanyahu and Levy did not cooperate and the rivalry between the two only intensified afterwards. During the
Gulf War in early 1991, the English-fluent Netanyahu emerged as the principal spokesman for Israel in media interviews on
CNN and other news outlets. During the
Madrid Conference of 1991 Netanyahu was among members the Israeli delegation headed by Prime Minister
Yitzhak Shamir. After the Madrid Conference Netanyahu was appointed as Deputy Minister in the Israeli Prime Minister's Office.
Following the defeat of the Likud party in the
1992 Israeli legislative elections the Likud party held a primary election in 1993 to select its leader, and Netanyahu was victorious, defeating
Benny Begin, son of the late Prime Minister
Menachem Begin, and veteran politician
 (Sharon initially sought Likud party leadership as well, but quickly withdrew when it was evident that he was attracting minimal support). Shamir retired from politics shortly after the Likud's defeat in the 1992 elections.
assassination of Yitzhak Rabin, his temporary successor
Shimon Peres decided to call early elections in order to give the government a mandate to advance the peace process.
 Netanyahu was the Likud's candidate for Prime Minister in the
1996 Israeli legislative election which took place on 26 May 1996 and were the first Israeli elections in which
Israelis elected their Prime Minister directly. Netanyahu hired American
Republican political operative
Arthur Finkelstein to run his campaign, and although the American style of sound bites and sharp attacks elicited harsh criticism from inside Israel, it proved effective (the method was later copied by
Ehud Barak during the
1999 election campaign in which Barak beat Netanyahu). When Netanyahu won the
1996 election, he became the youngest person in the history of the position and the first Israeli Prime Minister to be born in the State of Israel (
Yitzhak Rabin was born in Jerusalem, under the British Mandate of Palestine, prior to the 1948 founding of the Israeli state).
Benjamin Netanyahu (right) meeting with members of the Tzur family of
who lost their mother and a son in a terrorist attack.
Netanyahu's victory over the pre-election favorite
Shimon Peres surprised many. The main catalyst in the downfall of the latter was a wave of
suicide bombings shortly before the elections; on
4 March 1996, Palestinians carried out two
suicide bombings, killing 32 Israelis, with Peres seemingly unable to stop the attacks. Unlike Peres, Netanyahu did not trust
Yasser Arafat and conditioned any progress at the peace process on the
Palestinian National Authority fulfilling its obligations – mainly fighting terrorism, and ran with the campaign slogan "Netanyahu – making a safe peace". However, although Netanyahu won the election for Prime Minister,
Labor won the
Knesset elections, beating the Likud–
Tzomet alliance, meaning Netanyahu had to rely on a coalition with the
UTJ (whose social welfare policies flew in the face of his capitalistic outlook) in order to govern.
First premiership, 1996–99
Netanyahu met with Palestinian President
at the Erez crossing, 4 September 1996
A spate of suicide bombings reinforced the Likud position for security.
Hamas claimed responsibility for most of the bombings. As Prime Minister, Netanyahu raised many questions about many central premises of the
Oslo Accords. One of his main points was disagreement with the Oslo premise that the negotiations should proceed in stages, meaning that concessions should be made to Palestinians before any resolution was reached on major issues, such as the
status of Jerusalem, and the amending of the
Palestinian National Charter. Oslo supporters had claimed that the multi-stage approach would build goodwill among Palestinians and would propel them to seek reconciliation when these major issues were raised in later stages. Netanyahu said that these concessions only gave encouragement to extremist elements, without receiving any tangible gestures in return. He called for tangible gestures of Palestinian goodwill in return for Israeli concessions. Despite his stated differences with the Oslo Accords, Prime Minister Netanyahu continued their implementation, but his Premiership saw a marked slow-down in the peace process.
In 1996, Netanyahu and
Ehud Olmert decided to open an exit in the
Arab Quarter for the
Western Wall Tunnel, which prior Prime Minister
Shimon Peres had instructed to be put on hold for the sake of peace.
 This sparked three days of
rioting by Palestinians, resulting in both Israelis and Palestinians being killed.
 In January 1997 Netanyahu signed the
Hebron Protocol with the
Palestinian Authority which resulted in the redeployment of Israeli forces in
Hebron and the turnover of civilian authority in much of the area to the
Prime Minister Netanyahu, with his son, at the Western Wall in 1998.
Eventually, the lack of progress of the peace process led to new negotiations which produced the
Wye River Memorandum in 1998 which detailed the steps to be taken by the Israeli government and Palestinian Authority to implement the earlier Interim Agreement of 1995. It was signed by Netanyahu and PLO chairman
Yasser Arafat, and on 17 November 1998, Israel's 120 member parliament, the
Knesset, approved the Wye River Memorandum by a vote of 75–19. As Prime Minister Netanyahu emphasized a policy of "three no(s)": no withdrawal from the Golan Heights, no discussion of the case of Jerusalem, no negotiations under any preconditions.
Prime Minister Netanyahu and his wife visit a
During his term, Netanyahu also began a process of economic liberalization, taking steps towards a free-market economy. Under his watch, the government began selling its shares in banks and major state-run companies. Netanyahu also greatly eased Israel's strict
foreign exchange controls, enabling Israelis to take an unrestricted amount of money out of the country, open foreign bank accounts, hold foreign currency, and invest freely in other countries.
Throughout his term, Netanyahu was opposed by the political left wing in Israel and lost support from the right because of his concessions to the Palestinians in
Hebron and elsewhere, and due to his negotiations with Arafat generally. Netanyahu lost favor with the Israeli public after a long chain of scandals involving his marriage and corruption charges. In 1997,
police recommended that Netanyahu be indicted on corruption charges for influence-peddling. He was accused of appointing an attorney general who would reduce the charges and prosecutors ruled that there was insufficient evidence to go to trial.
 In 1999, Netanyahu faced another scandal when the
Israel Police recommended that he be tried for corruption for $100,000 in free services from a government contractor; Israel's attorney general did not prosecute, citing difficulties with evidence.
After being defeated by
Ehud Barak in the 1999
election for Prime Minister, Netanyahu temporarily retired from politics.
 He subsequently served as a senior consultant with Israeli communications equipment developer BATM for two years.
at the Jewish Community Centre, Moscow, 2000
Benjamin Netanyahu at the grave of his brother
, who was killed leading a counter-terrorist operation in 1976
With the fall of the Barak government in late 2000, Netanyahu expressed his desire to return to politics. By law, Barak's resignation was supposed to lead to elections for the prime minister position only. Netanyahu insisted that general elections should be held, claiming that otherwise it would be impossible to have a stable government. Netanyahu decided eventually not to run for the prime minister position, a move which facilitated the surprising rise to power of
Ariel Sharon, who at the time was considered less popular than Netanyahu. In 2002, after the
Israeli Labor Party left the coalition and vacated the position of foreign minister, Prime Minister Ariel Sharon appointed Netanyahu as Foreign Minister.
 Netanyahu challenged Sharon for the leadership of the Likud party, but failed to oust Sharon.
On 9 September 2002, a scheduled speech by Netanyahu at
Concordia University in Montreal, Quebec, Canada
was canceled after hundreds of pro-Palestinian protesters overwhelmed security and smashed through a glass window. Netanyahu was not present at the protest, having remained at Montreal's
Ritz-Carlton Hotel throughout the duration. He later accused the activists of supporting terrorism and "mad zealotry".
 Weeks later on 1 October 2002 around 200 protesters met Netanyahu outside his
Heinz Hall appearance in
Pittsburgh Police, Israeli security and a Pittsburgh
SWAT unit allowed his speeches to continue
downtown at the hall and the
Duquesne Club as well as suburban
Robert Morris University.
On 12 September 2002, Netanyahu testified (under oath as a private citizen) before the
U.S. House of Representatives
Committee on Oversight and Government Reform regarding the nuclear threat posed by the Iraqi régime: "There is no question whatsoever that
Saddam is seeking and is working and is advancing towards the development of nuclear weapons – no question whatsoever," he said. "And there is no question that once he acquires it, history shifts immediately."
 Netanyahu and other high rank officials from different countries had suspected that Iraq could develop a nuclear capability, as the country began building a nuclear power plant program in 1959 with the
USSR, but Israeli airstrikes had destroyed Iraq's nuclear reactor in 1981 (see
Finance Minister, 2003–05
2003 Israeli legislative election, in what many observers regarded as a surprise move, Sharon offered the
Foreign Ministry to
Silvan Shalom and offered Netanyahu the
Finance Ministry. Some pundits speculated that Sharon made the move because he deemed Netanyahu a political threat given his demonstrated effectiveness as Foreign Minister, and that by placing him in the Finance Ministry during a time of economic uncertainty, he could diminish Netanyahu's popularity. Netanyahu accepted the new appointment. Sharon and Netanyahu came to an agreement that Netanyahu would have complete freedom as Finance Minister and have Sharon back all of his reforms, in exchange for Netanyahu's silence over Sharon's management of Israel's military and foreign affairs.
As Finance Minister, Netanyahu undertook an economic plan in order to restore Israel's economy from its low point during the
Second Intifada. Netanyahu claimed that a bloated public sector and excessive regulations were largely responsible for stifling economic growth. His plan involved a move toward more
liberalized markets, although it was not without its critics. He instituted a program to end welfare dependency by requiring people to apply for jobs or training, reduced the size of the public sector, froze government spending for three years, and capped the budget deficit at 1%. The taxation system was streamlined and taxes were cut, with the top individual tax rate reduced from 64% to 44% and the corporate tax rate from 36% to 18%. A host of state assets worth billions of dollars were privatized, including banks, oil refineries, the
El Al national airline, and
Zim Integrated Shipping Services. The retirement ages for both men and women were raised, and currency exchange laws were further liberalized. Commercial banks were forced to spin off their long-term savings. In addition, Netanyahu attacked monopolies and cartels to increase competition. As the Israeli economy started booming and unemployment fell significantly, Netanyahu was widely credited by commentators as having performed an 'economic miracle' by the end of his tenure.
However, opponents in the Labor party (and even a few within his own Likud) viewed Netanyahu's policies as "Thatcherite" attacks on the venerated Israeli social safety net.
 Ultimately, unemployment declined while economic growth soared, the debt-to-GDP ration dropped to one of the lowest in the world, and foreign investment reached record highs.
Netanyahu threatened to resign from office in 2004 unless the
Gaza pullout plan was put to a referendum. He later modified the ultimatum and voted for the program in the Knesset, indicating immediately thereafter that he would resign unless a referendum was held within 14 days.
 He submitted his resignation letter on 7 August 2005, shortly before the Israeli cabinet voted 17 to 5 to approve the initial phase of withdrawal from
Likud leader and opposition leader, 2005–09
Following the withdrawal of Sharon from the Likud, Netanyahu was one of several candidates who vied for the Likud leadership. His most recent attempt prior to this was in September 2005 when he had tried to hold early primaries for the position of the head of the Likud party, while the party held the office of Prime Minister – thus effectively pushing Ariel Sharon out of office. The party rejected this initiative. Netanyahu retook the leadership on 20 December 2005, with 47% of the primary vote, to 32% for
Silvan Shalom and 15% for
 In the
March 2006 Knesset elections, Likud took the third place behind
Labor and Netanyahu served as Leader of the Opposition.
 On 14 August 2007, Netanyahu was reelected as chairman of the Likud and its candidate for the post of Prime Minister with 73% of the vote, against far-right candidate
Moshe Feiglin and World Likud chairman
 He opposed the
2008 Israel–Hamas ceasefire, like others in the Knesset opposition. Specifically, Netanyahu said, "This is not a relaxation, it's an Israeli agreement to the rearming of Hamas ... What are we getting for this?"
In the first half of 2008, doctors removed a small
colon polyp that proved to be benign.
for a working dinner in Washington, D.C., 18 May 2009
Tzipi Livni's election to head
Kadima and Olmert's resignation from the post of Prime Minister, Netanyahu declined to join the coalition Livni was trying to form and supported new elections, which were held in February 2009.
 Netanyahu was the Likud's candidate for Prime Minister in the
2009 Israeli legislative election which took place on 10 February 2009, as Livni, the previous
Designated Acting Prime Minister under the Olmert government, had been unable to form a viable governing coalition. Opinion polls showed Likud in the lead, but with as many as a third of Israeli voters undecided.
In the election itself, Likud won the second highest number of seats, Livni's party having outnumbered the Likud by one seat. A possible explanation for Likud's relatively poor showing is that some Likud supporters defected to
Yisrael Beiteinu party. Netanyahu, however, claimed victory on the basis that right-wing parties won the majority of the vote, and on 20 February 2009, Netanyahu was designated by Israeli President
Shimon Peres to succeed Ehud Olmert as prime minister, and began his negotiations to form a coalition government.
Despite right wing parties winning a majority of 65 seats in the
Knesset, Netanyahu preferred a broader centrist coalition and turned to his Kadima rivals, chaired by Tzipi Livni, to join his government. This time it was Livni's turn to decline to join, with a difference of opinion on how to pursue the peace process being the stumbling block. Netanyahu did manage to entice a smaller rival, the Labour party, chaired by Ehud Barak, to join his government, giving him a certain amount of centrist tone. Netanyahu presented his cabinet for a Knesset "Vote of Confidence" on 31 March 2009. The 32nd Government was approved that day by a majority of 69 lawmakers to 45 (with five abstaining) and the members were sworn in.
Second premiership, 2009–13
Prime Minister Netanyahu speaks with female combat soldiers from the Israel Defense Forces on the border with the Egyptian Sinai.
Netanyahu in a meeting with President
in Russia, 24 March 2011
In 2009, US Secretary of State
Hillary Clinton voiced support for the establishment of a
Palestinian state—a solution not endorsed by
prime minister-designate Benjamin Netanyahu,
 with whom she had earlier pledged the United States' cooperation.
 Upon the arrival of President Obama administration's special envoy,
George Mitchell, Netanyahu said that any furtherance of negotiations with the Palestinians would be conditioned on the Palestinians recognizing Israel as a Jewish state.
President Obama's Cairo speech on 4 June 2009 in which Obama addressed the
Muslim world, Obama stated, among other things, that "The United States does not accept the legitimacy of continued Israeli settlements." Following Obama's Cairo speech Netanyahu immediately called a special government meeting. On 14 June, ten days after Obama's Cairo speech, Netanyahu gave a speech at Bar-Ilan University in which he endorsed a "Demilitarized Palestinian State", though said that Jerusalem must remain the unified capital of Israel.
 Netanyahu stated that he would accept a
Palestinian state if
Jerusalem were to remain
the united capital of Israel, the Palestinians would have no army, and the Palestinians would give up their demand for a
right of return. He also argued the right for a "natural growth" in the
existing Jewish settlements in the
West Bank while their permanent status is up to further negotiation. Senior Palestinian official, Sereb Ereket, said that the speech had "closed the door to permanent status negotiations" due to Netanyahu's declarations on Jerusalem, refugees and settlements.
Three months after starting his term, Netanyahu remarked that his cabinet already had achieved several notable successes, such as the establishment of a working
national unity government, and a broad consensus for a "
 A July 2009 survey by
Ha'aretz found that most Israelis support the Netanyahu government, giving him a personal approval rating of about 49 percent.
 Netanyahu has lifted checkpoints in the
West Bank in order to allow freedom of movement and a flow of imports; a step that resulted in an economic boost in the West Bank.
 In 2009, Netanyahu welcomed the
Arab Peace initiative (also known as the "Saudi Peace Initiative") and lauded a call by
Salman bin Hamad bin Isa Al Khalifa to normalize relations with Israel.
In August 2009, Abbas declared that he would be willing to meet with Prime Minister Netanyahu at the
UN General Assembly, where Netanyahu had accepted president Obama's invitation for a "triple summit", although he said it would not necessarily lead to negotiations.
 Netanyahu was reported to be in a pivotal moment over these understandings, that were reported to include a compromise over permission on continuing the already approved construction in the
West Bank in exchange for freezing all settlements thereafter, as well as continuing building in
East Jerusalem, and at the same time stopping the demolition of houses of Arab inhabitants there.
 On 4 September 2009, it was reported that Netanyahu was to agree to settlers' political demands to approve more settlement constructions before a temporary settlement freeze agreement took place.
 White House spokesman
Robert Gibbs expressed "regret" over the move;
 however, one U.S. official said the move will not "derail [the] train".
On 7 September 2009, Netanyahu left his office without reporting where he was headed. The prime minister's military secretary, Maj. Gen. Meir Kalifi, later reported Netanyahu had visited a security facility in Israel.
 Several different news agencies reported several different stories about where he was.
 On 9 September 2009,
Yedioth Ahronoth reported that the Israeli leader had made a secret flight to Moscow to try to persuade Russian officials not to sell S-300 anti-aircraft missile systems to Iran.
 Headlines branded Netanyahu a "liar" and dubbed the affair a "fiasco".
 It was later reported that the PM's military secretary will be dismissed due to the affair.
The Sunday Times reported that the trip was made to share the names of Russian scientists that Israel believes are abetting the alleged Iranian nuclear weapons program.
, appointed Israel's Chief of Police in 2011
On 24 September 2009, in an address to the United Nations General Assembly in New York, Netanyahu said Iran poses a threat to the peace of the world and that it is incumbent on the world body to prevent the Islamic Republic from obtaining nuclear weapons.
 Waving the blueprints for Auschwitz and invoking the memory of his own family members murdered by the Nazis, Netanyahu delivered a passionate and public riposte to Iranian president Mahmoud Ahmadinejad's questioning of the Holocaust, asking: "Have you no shame?"
In response to pressure from the Obama administration urging the sides to resume peace talks, on 25 November 2009 Netanyahu announced a partial 10-month settlement construction freeze plan. The announced partial freeze had no significant effect on actual settlement construction, according to an analysis by the major Israeli daily
 U.S. special envoy George Mitchell said, "while the United States shares Arab concerns about the limitations of Israel's gesture, it is more than any Israeli government has ever done".
 In his announcement Netanyahu called the move "a painful step that will encourage the peace process" and urged the Palestinians to respond.
 The Palestinians rejected the call, stating the gesture was "insignificant" in that thousands of recently approved settlement buildings in the West Bank would continue to be built and there would be no freeze of settlement activity in East Jerusalem.
In March 2010, Israel's government approved construction of an additional 1,600 apartments in a large Jewish housing development in northern East Jerusalem called
 despite the position of the current U.S. Government that acts such as this thwart the peace talks between Israel and the Palestinians. The Israeli government's announcement occurred during a visit by U.S. Vice-President
Joe Biden and the U.S. government subsequently issued a strongly worded condemnation of the plan.
 Netanyahu subsequently issued a statement that all previous Israeli governments had continuously permitted construction in the neighborhood, and that certain neighborhoods such as Ramat Shlomo and
Gilo have always been included as part of Israel in any final agreement plan that has been proposed by either side to date.
 Netanyahu regretted the timing of the announcement but asserted that "our policy on Jerusalem is the same policy followed by all Israeli governments for the 42 years, and it has not changed."
In September 2010, Netanyahu agreed to enter
direct talks, mediated by the
Obama administration, with the Palestinians for the first time in a long while.
 The ultimate aim of these direct talks is to forge the framework of an official "final status settlement" to the
Israeli–Palestinian conflict by forming a
two-state solution for the
Jewish people and the
Palestinian people. On 27 September, the 10-month settlement freeze ended, and the Israeli government approved new construction in the West Bank, including East Jerusalem.
 On retiring from office in July 2011, former U.S. Secretary of Defense
Robert Gates had said that Netanyahu was ungrateful to the United States and endangering Israel. Responding, the Likud party defended Netanyahu by saying that most Israelis supported the Prime Minister and that he had broad support in the United States.
Netanyahu unsuccessfully called for the early release of
Jonathan Pollard, an American serving a life sentence for passing secret U.S. documents to Israel in 1987.
 He has raised the issue at the
Wye River Summit in 1998, where he claimed that U.S. President Bill Clinton had privately agreed to release Pollard.
 In 2002, Netanyahu visited Pollard at his
North Carolina prison.
 The Israeli Prime Minister maintained contact with Pollard's wife, and was active in pressing the Obama administration to release Pollard.
social justice protests broke out across Israel. Hundreds of thousands of people protested Israel's high cost of living throughout the country. In response, Netanyahu appointed the
Trajtenberg Committee, headed by professor
Manuel Trajtenberg, to examine the problems and propose solutions. The committee submitted recommendations to lower the high cost of living in September 2011.
 Although Netanyahu promised to push the proposed reforms through the cabinet in one piece, differences inside his coalition resulted in the reforms being gradually adopted.
Netanyahu's cabinet also approved a plan to build a
fiber-optic cable network across the country to bring cheap, high-speed
fiber-optic Internet access to every home.
In 2012, Netanyahu initially planned to call early elections, but subsequently oversaw the creation of a controversial government of national unity to see Israel through until the national elections of 2013.
 In May 2012, Netanyahu officially recognized for the first time the right for Palestinians to have their own state in an official document, a letter to Mahmoud Abbas, though as before
 he declared it would have to be demilitarized.
 On 25 October 2012, Netanyahu and Foreign Minister
Avigdor Lieberman announced that their respective political parties,
Yisrael Beiteinu, had merged and would run together on a single ballot in Israel's 22 January 2013 general elections.
Third premiership, 2013–15
U.S. Secretary of State
and Netanyahu, Jerusalem, 23 July 2014
2013 election returned Netanyahu's
Likud Beiteinu coalition with 11 fewer seats than the combined Likud and Yisrael Beiteinu parties had going into the vote. Nevertheless, as leader of what remained the largest faction in the Knesset, Israeli president Shimon Peres charged Netanyahu with the task of forming the
Thirty-third government of Israel. The new coalition included the
The Jewish Home and
Hatnuah parties and excludes the ultra-Orthodox parties at the insistence of Yesh Atid and the Jewish Home.
During Netanyahu's third term, he continued his policy of economic liberalization. In December 2013, the Knesset approved the Business Concentration Law, which intended to open Israel's highly concentrated economy to competition to lower consumer prices, reduce income inequality, and increase economic growth. Netanyahu had formed the Concentration Committee in 2010, and the bill, which was pushed forward by his government, implemented its recommendations. The new law banned multi-tiered corporate holding structures, in which a CEO's family members or other affiliated individuals held public companies which in turn owned other public companies, and who were thus able to engage in
price gouging. Under the law, corporations were banned from owning more than two tiers of publicly listed companies and from holding both financial and non-financial enterprises. All conglomerates were given four to six years to sell excess holdings.
 Netanyahu also began a campaign of port privatization to break what he viewed as the monopoly held by workers of the
Israel Port Authority, so as to lower consumer prices and increase exports. In July 2013, he issued tenders for the construction of private ports in
 Netanyahu has also pledged to curb excess bureaucracy and regulations to ease the burden on industry.
In April 2014, and again in June, Netanyahu spoke of his deep concerns when Hamas and the Palestinian Authority agreed and then formed a unity government, and was severely critical of both the United States and European governments' decision to work with the Palestinian coalition government.
 He blamed Hamas for
the kidnapping and murder of three Israeli teenagers in June 2014,
 and launched a massive search and arrest operation on the West Bank, targeting members of Hamas in particular, and over the following weeks hit 60 targets in Gaza.
 Missile and rocket exchanges between Gaza militants and the IDF escalated after the bodies of the teenagers, who had been killed almost immediately as the government had good reasons to suspect, were discovered on 30 June 2014.
 After several
Hamas operatives were killed, either in an explosion or from an Israeli bombing, Hamas officially declared it would launch rockets from Gaza into Israel,
 and Israel started
Operation Protective Edge in the Gaza Strip, formally ending the November 2012 ceasefire agreement.
 The prime minister did a round of television shows in the United States and described Hamas as "genocidal terrorists" in an interview on CNN.
 When asked if Gazan casualties from the operation might spark "a third intifada", Netanyahu replied that Hamas was working towards that goal.
In October 2014, Netanyahu's government approved a privatization plan to reduce corruption and politicization in government companies, and strengthen Israel's capital market. Under the plan, minority stakes of up to 49% in state-owned companies, including arms manufacturers, energy, postal, water, and railway companies, as well as the ports of Haifa and Ashdod.
 That same month, Netanyahu called restrictions on settlements "against the American values",
 a remark that earned him a sharp rebuke from the White House Press Secretary Josh Earnest, who noted that American values had resulted in Israel receiving not only consistent funding but protective technology such as Iron Dome.
 Not long thereafter, Jeffrey Goldberg of The Atlantic reported that the relationship between Netanyahu and the White House had reached a new low, with the U.S. administration angry over Israel's settlement policies, and Netanyahu expressing contempt for the American administration's grasp of the Middle East.
 Netanyahu explained that he does not accept restrictions on where Jews could live, and said that Jerusalem's Arabs and Jews should be able to buy homes wherever they want. He said he was "baffled" by the American condemnation. "It's against the American values. And it doesn't bode well for peace. The idea that we'd have this ethnic purification as a condition for peace, I think it's anti-peace."
Netanyahu meets with Russian President
in Moscow to discuss Syria and Iran, 21 September 2015
On 2 December 2014, Netanyahu fired two of his ministers, Finance Minister
Yair Lapid, who heads the centrist
Yesh Atid party and Justice Minister
Tzipi Livni, who heads
Hatnua. The changes led to the dissolution of the government, with new elections expected on 17 March 2015.
In January 2015, Netanyahu was invited to address the US Congress. This speech marked Netanyahu's third speech to a joint session of Congress.
 The day before announcing he would address Congress,
Time reported that he tried to derail a meeting between U.S. lawmakers and the head of Mossad,
Tamir Pardo, who intended warning them against imposing further sanctions against Iran, a move that might derail nuclear talks.
 Leading up to the speech, on 3 March 2015, Israeli consuls general in the United States "expect[ed] fierce negative reaction from U.S. Jewish communities and Israel's allies". Objections included the arrangement of the speech without the support and engagement of the Obama administration and the timing of the speech before Israel's 17 March 2015 election. Seven American Jewish lawmakers met with Ron Dermer, Israel's ambassador to the U.S. and recommended that Netanyahu instead meet with lawmakers privately to discuss Iran.
 In making the speech, Netanyahu claimed to speak for all Jews worldwide, a claim disputed by others in the Jewish community.
 Rebecca Vilkomerson, executive director of Jewish Voice for Peace, stated that "American Jews are largely appalled by the notion that Netanyahu, or any other Israeli politician – one that we did not elect and do not choose to be represented by – claims to speak for us."
As election day approached in what was perceived to be a close race in the 2015 Israeli elections, Netanyahu answered 'indeed' when asked whether a Palestinian state would not be established in his term. He said that support of a Palestinian state is tantamount to yielding territory for radical Islamic terrorists to attack Israel.
 However, Netanyahu reiterated "I don't want a one-state solution. I want a peaceful, sustainable two-state solution. I have not changed my policy."
Fourth premiership, 2015–present
Netanyahu meets with President
in Jerusalem, May 2017
2015 election, Netanyahu returned with his party Likud leading the elections with 30 mandates, making it the single highest number of seats for the Knesset. President Rivlin granted Netanyahu an extension until 6 May 2015 to build a coalition when one had not been finalized in the first four weeks of negotiations.
 He formed a coalition government within two hours of the midnight 6 May deadline.
 His Likud party formed the coalition with
United Torah Judaism,
On 28 May 2015, Netanyahu announced that he would be running for an unprecedented fifth term as Prime Minister in the next general election and that he supports Likud's current process of picking MK candidates.
In August 2015, Netanyahu's government approved a two-year budget that would see agricultural reforms and lowering of import duties to reduce food prices, deregulation of the approval process in construction to lower housing costs and speed up infrastructure building, and reforms in the financial sector to boost competition and lower fees for financial services.
 In the end, the government was forced to compromise by removing some key agricultural reforms.
In October 2015, Netanyahu drew widespread criticism for claiming that the Grand Mufti of Jerusalem,
Haj Amin al-Husseini, gave Adolf Hitler the idea for the
Holocaust in the preceding months to the
Second World War, convincing the Nazi leader to exterminate Jews rather than just expel them from Europe.
 This idea is dismissed by mainstream historians,
 who note that al-Husseini's meeting with Hitler took place approximately five months after the mass murder of Jews began.
 German Chancellor
Angela Merkel said she did not accept Netanyahu's claims, and reiterated an acceptance of her country's crimes during the Nazi era.
 Netanyahu later explained that his "aim was not to absolve Hitler from the responsibility he bears, but to show that the father of the Palestinian nation at the time, without a state and before the 'occupation,' without the territories and with the settlements, even then aspired with systemic incitement for the destruction of the Jews."
 Some of the strongest criticism came from Israeli academics:
Yehuda Bauer said Netanyahu's claim was "completely idiotic",
Moshe Zimmermann stated that "any attempt to deflect the burden from Hitler to others is a form of
In March 2016 Netanyahu's coalition faced a potential crisis as ultra-Orthodox members threatened to withdraw over the government's proposed steps to create non-Orthodox prayer space at the
Western Wall. They have stated they will leave the coalition if the government offers any further official state recognition of Conservative and
On 23 December 2016, the
United States, under the
Obama Administration, abstained from
United Nations Security Council Resolution 2334, effectively allowing it to pass.
 On 28 December, U.S. Secretary of State
John Kerry strongly criticized Israel and its
settlement policies in a speech.
 Netanyahu strongly criticized both the UN Resolution
 and Kerry's speech
 in response. On 6 January 2017, the Israeli government withdrew its annual dues from the organization, which totaled $6 million in
United States dollars.
On 22 February 2017, Netanyahu became the first serving Prime Minister of Israel to visit
Australia. He was accompanied by his wife, Sara. The three day official visit included a delegation of business representatives, and Netanyahu and
Prime Minister of Australia
Malcolm Turnbull were scheduled to sign several bilateral agreements. Netanyahu recalled that it was the
Australian Light Horse regiments that
World War 1, and this began what has been a relationship of 100 years between the countries.
Since January 2017, Netanyahu is being investigated and questioned by the Israeli police in two cases not made public before, "
Case 1000" and "
Case 2000", that were named this way by the police due to the link between them. In the first case, "1000", the prime minister is suspected in allegedly obtaining inappropriately large-scale benefits from businessmen, among them Hollywood producer
Arnon Milchan and
 The second case involves alleged attempts to strike a deal with publisher of the
Yediot Ahronot newspaper group, Arnon Mozes, to promote legislation to weaken Yediot's main competitor,
Israel Hayom, in exchange for more favorable coverage of him by Yediot.
On August 3, 2017, the police confirmed for the first time Netanyahu is suspected of crimes involving fraud, breach of trust and bribes in the cases "1000" and "2000".
 On August 4, it was reported that the prime minister's former chief of staff,
Ari Harow, has signed a deal with prosecutors to become state's witness and testify against Netanyahu in these cases.