Israel’s political parties are on the move and eyeing new alliances in the wake of Prime Minister Binyamin Netanyahu’s surprise announcement of a merger between his Likud and Avigdor Lieberman’s Israel Beitenu ahead of the general election in January. Netanyahu is eying the brand new Future party headed by ex-journalist Yair Lapid as a third prospective partner in his post-election cabinet. Labor under its new leader Shelly Yachimovich is resurgent and on the lookout for satellites. But the new Likud Beitunu list is still front-runner.

A triangular bond is formed by Israel, Nicosia and Athens for joint gas field exploration and production secured by the shared umbrella of the Israeli Navy. On January 9, Cyprus Defense Minister Demetris Eliades arrived in Tel Aviv for the signing of two defense pacts with Israeli Defense Minister Ehud Barak.

  Moscow and Rome are angling for contracts to build and operate the future pipeline to Europe. The Unites States holds the edge in the bidding.

Israeli leaders focus on Palestinian UN bid for state recognition to escape grappling with far more serious issues – hostile Turkish steps, Egypt's retreat from peace norms and Hamas' military and weapons buildup.

Prime Minister Netanyahu has dropped his long-time ally and partner-in-policymaking Defense Minister Ehud Barak and turned to hardline Foreign Minister Avigdor Lieberman as his only adviser. But essentially, Bibi has dispensed with a circle of advisers and taken over the solo lead in all defense affairs and important foreign relations.