US officials are publicly taking a wait-and-see approach to the formation of a new Israeli government, but privately many have expressed concern that Likud leader Binyamin Netanyahu might preside over a right-wing coalition."There would be great unease" at the prospect of such a government, said one Capitol Hill source.
He predicted that a governing coalition of parties from the Right could embolden the left flank of the Democratic party and turn up pressure, particularly in the US Congress, to pass measures that made clear demands on Israel.
He distinguished, however, between a Netanyahu-led right-wing coalition and Netanyahu-led national unity government.
Despite the Likud's second-place finish to the centrist Kadima party, parties on the Right won more of the vote, which means Netanyahu might have an easier time forming a hawkish coalition but could try to work out a formula for a unity government, as could Kadima head Tzipi Livni.
The Capitol Hill source, who didn't want to be identified speaking about another country's internal politics, noted that Netanyahu had made a strong effort to reach out to the Obama administration and made the case to the US and the Israeli public that he could work with the White House.
He said that attitude could help assuage US concerns when presented in a national-unity package, whose positions - whether under Netanyahu or Livni - would be more in line with the US's own policies of engagement on Arab-Israeli reconciliation.