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Wait, how is this the first time I'm hearing about the Knesset being dissolved? So... Netanyahu is just going to make himself an explicit autocrat and I've never even heard about it before now?
I'm not kidding when I say it's a very basic part of the Israeli state. Only 6 out of 23 Knessets have ever gone full term. It's more news if it didn't happen.
Typically, dissolving parliament doesn't refer to the abolition of the institution, but an end to the current electoral mandate and a call for new elections. It happens in most parliamentary systems when an impasse is reached, unlike the US where we repeatedly shut down the government, furlough hundreds of thousands of state employees, and jack off for a year and a half until the next scheduled federal election.
That's just the thing you do to call an election. Happens in most parliamentary systems.