"This is complete nonsense, all this talk about the expenses, the bottle refunds and a few thousand shekels which Sara (Netanjahu) got for it, that's just a spin by the opposition," says Nissim Armosa, a veteran Likud party member. Armosa is playing backgammon with friends in a coffee-shop in the Mahane Yehuda market in Jerusalem. "Most here are with the Likud. And Bibi will continue to be the prime minister, whether the opposition likes it or not." Armosa proudly shows his Likud-membership card, saying that nothing will deter him for voting for Likud again.

The bone of contention is the Israeli state comptroller's report on the expenses incurred at the private residences of Israel's prime minister. Even prior to its release, speculations ran high about whether this report would have an impact on the upcoming elections, scheduled for March 17, as well as on Netanyahu's own ambitions to become Israel's prime minister for a fourth term. According to the latest opinion polls, one out of four Israelis are still undecided. The race between Netanyahu's Likud party and the Labor Party, headed by Isaac Herzog, is tight. And it could get even tighter in the wake of the report. In it the state auditor lists a number of infractions, including unrefunded cash, disproportionate maintenance expenses and excessive spending on food and clothing.

In another restaurant in the market, where a younger crowd is having lunch, the atmosphere is quite different. Here, people are fed up with the scandals surrounding the Netanyahu family. "I believe the prime minister should be modest and should be a role model," says Shiran Cohen. "And I think it will influence the elections." Another young Israeli is equally critical of the prime minister, since many young people are struggling with rising housing prices and overall high living costs. "I feel it is really wrong. Sometimes I have the feeling that he doesn't care at all about the people. He just thinks about himself," says Omri Yoeli.

A forgiving public

This would not be the first time that the Netanyahu family is under criticizm for its extravagant life-style. The announcement to publish the report came after intense speculation in the Israeli media and as a result of pressure by political opponents over the latest scandal involving Netanyahu's wife, Sara. The so-called Bottle-Gate affair refers to allegations Israel's first lady withheld deposits from recycled bottles.

A former employee accused Sara Netanyahu of keeping parts of the cash for bottles that were returned, despite the fact that drinks are bought with state funds. "Bottle-Gate" has been used by local media to make a point of reminding the public of the different smaller and bigger scandals the Netanyahu family has allegedly been involved in since taking up residence in Balfour Street in West-Jerusalem. Two years ago, the Netanyahu family made headlines for claiming an extra budget of about €2000 per year for the purchase of pistachio and vanilla ice-cream for the family and their guests. "But for now," says the left-wing daily Ha'aretz, "the Israeli public has been very forgiving."

Political analysts are divided over the implications of the report but are certain that it will have an impact on Netanyahu's image. "I have the feeling that the majority of the public in Israel is fed up with these kinds of stories," says Chico Menashe, diplomatic commentator at Israeli national radio. "But I think that those who wanted to vote for Netanyahu will still vote for him, and the others who are voting for the left will still vote for the left, and the report will not make people shift from one camp to the other."

However, it also depends on the severity of the report, says political analyst Gil Hoffman, who works for the English-language daily The Jerusalem Post. "It could be potentially damaging because it could show the extent to which Netanyahu abused tax payers' funds," says Hoffman. "Time magazine once referred to him as 'King Bibi'. Israelis like the fact that he is someone who is respected around the world as a strong leader, but what they don't like is if someone acts like a king in a negative sense of the word"

Controversial speech before US-Congress

But the report is not the only issue dominating the headlines in Israel. Benjamin Netanyahu's planned speech before a joint session of the US Congress on March 3, just two weeks before the Israeli elections, has triggered an even greater debate and criticism across the political divide in Israel. In his speech to Congress the Israeli prime minister is expected to speak out against any nuclear deal with Iran which would allow it to retain centrifuges which are used to enrich uranium. His trip to Washington, by invitation from Republican House Speaker John Boehner, has angered the Obama administration and further strained relations between the two leaders.

According to recent opinion polls, voters in Israel are concerned that Netanyahu is utilizing the issue for his own political survival while damaging important relations with Israel's closest ally, the United States. Most Israelis support Netanyahu's concern over Iran's nuclear ambitions. However, the timing of his speech to Congress is seen by many as wrong. But as of now Netanjahu seems to be determined to go to Congress, despite criticism and the possibility that some seats during his speech might be empty. US Vice-President Joe Biden's office has announced that Biden would have to "miss the speech because of a scheduling conflict."

Despite the criticism back home, some analysts suggest that it might be beneficial for the prime minister. "Mr. Netanyahu knows it will not harm his campaign. He knows that he has to take votes from Mr. Bennett's (Jewish Home) party which is the biggest problem for the Likud," says political commentator Chico Menashe. "And most of the right-wing is in favor of his speech, which Mr. Netanyahu sees as a vital interest for Israel."

Between now and the elections lots of things can happen, says Gil Hoffman. "A month in Israeli politics is like an eternity. As long as the focus returns to issues of national security, this will be good for him."