Until 1996 one of the few real powers of the president of the state -- the ceremonial head of state elected by the Knesset -- was to decide after every general election, resignation or death of the prime minister, or fall of the government by a vote of no-confidence, who should form the next government. The president would consult all parties with seats in the Knesset and then make his choice on the basis of who he felt had the best chance to form a government.

All of Israel's governments have been coalition governments, since no party ever had an absolute majority in the Knesset and under Israel's system of parliamentary democracy the government (now the prime minister) requires the support of at least 61 of the 120 MKs to be viable.

Until 1996 there was no limit to the number of ministers (who need not be MKs, but usually are) and deputy ministers (who must be MKs). As in Britain, the prime minister is considered "first among equals." At least in theory, there was to have been "collective responsibility," but in fact the level of discipline in the cabinet has usually been low and the dependence of the prime minister on the good will of his coalition partners encouraged slack discipline on their part. The prime minister has the right to remove ministers, but this happens only rarely. Until 1996 an ordinary Knesset majority could bring down the government by a vote of no-confidence. Only once has a government brought down in this way: the national unity government headed by Yitzhak Shamir, on March 15, 1990.

Since the institution of the direct election of the prime minister in 1996, the prime minister in theory has greater flexibility in appointing ministers, except for the fact that their number is now limited to 18. However, since the prime minister still requires the Knesset's approval for the appointment of ministers, and since 61 MKs can bring about new elections by means of a vote of no-confidence in the prime minister, the old coalition system persists, with all its weaknesses and failings.