Iran: A major issue facing Israel is Iran’s development of nuclear weapons. Netanyahu is strongly and vocally opposed to Obama’s tactics of continued negotiations in attempt to strike a deal with Iran. Herzog, leader of the Zionist Union has gone on record saying that while Iran is a threat to Israel he trusts Obama to negotiate a good deal.
Palestinians: The issue of how to most effectively deal with the Palestinians remains a central issue in this election. The Likud under Netanyahu in theory has expressed support for a two-state solution but has stated that with the current state of affairs, allowing for a Palestinian state that would be headed by Hamas would clearly not be a realistic solution at this time. Habayit Hayehudi and other right wing parties are strongly opposed to allowing the formation of a Palestinian State and are in favor of expanding Jewish communities in the Judea and Samaria aka the West Bank. The Zionist State party and the other center-left wing parties are in favor of territorial concessions, including negotiations over Jerusalem.
Cost of Living: Yesh Atid promotes that it is a party geared towards the middle class voters and as such is a proponent of 0% VAT for first time home-buyers. Kulanu is focused on reducing the cost of living by eliminating monopolies and increasing competition. Shas and Yahad are campaigning towards the poorest sectors with policies that include cancelling VAT on basic goods. Likud is considered economically conservative but is in favor of reducing VAT on basic goods. The Zionist Union is in favor of increased government spending for social policies.
Ties with the United States: The Zionist Union accuses Netanyahu of causing a breakdown in the relationship between Israel and the United States and Europe. Netanyahu’s relationship with President Obama has been notoriously contentious. The Zionist Union calls for rebuilding relations with the US and Europe and are largely in favor of supporting Obama’s lead in regards to Iran. Netanyahu believes that Israel should not capitulate on the issue of Iran and that he is the only leader strong and capable enough to withstanding US pressure. Habayit Hayehudi takes an unapologetic approach towards international relations as exemplified by its “we will not apologize” campaign slogan.