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Israel is going to elections because Netanyahu insisted on forming a far-right gov't, because it is crucial for him to pass a law shielding himself from criminal prosecution, or at the very least, have "loyal" partners who won't leave the coalition once he's indicted
Netanyahu could have formed a gov't with Blue & White, but such a coalition would not have passed Bibi's immunity law and B&W would have pulled out once Netanyahu is indicted, probably in a few months. Evidence against him is very strong.
B&W would have taken part in a unity government not headed by Netanyahu. He never considered that as an option. He fought hard to find the votes to dissolve the Knesset to avoid a scenario in which some other Likud MK becomes PM.
The Palestinian parties in the Knesset are voting for going to new elections because they plan on unifying & expect to gain more seats this time. Their division into 2 lists angered Arab voters who stayed away from the polls (turnout among them was 49%).
Netanyahu cleansed Likud of almost all opposition to his rule. No MK managed (or maybe even tried?) to seize the opportunity and find 61 MKs who would recommend him as the next PM. They all voted themselves out of a job.
