Ehud Olmert – concerned?
Photo: Haim Tsach
Kadima worried: Parties demand billions
Preparing for tough negotiations: Kadima officials concerned about exaggerated demands by potential coalition partners; all parties will have to make serious concessions, Kadima source says
The real struggle for the formation of a new coalition will begin once negotiations over socioeconomic matters get underway, with various coalition partners expected to make huge demands, associates of Acting Prime Minister Ehud Olmert say.
"At this time, the demands put forth by the parties add up to billions of shekels," a source involved in coalition talks told Ynet. "There can be no progress with that. There will be a need for all parties to make serious concessions."
Sources close to Olmert involved in talks with the Pensioners party said the "financial gaps between the sides are very large," with the party's demands totaling billions of shekels.
Labor party officials are also concerned about the difficulties in forming a new government as a result of various demands. A senior Labor member said he expects no serious problems when it comes to diplomatic matter, but foresees a struggle over socioeconomic affairs.
"We still haven't started dealing with everything, and therefore it could take quite a bit of time and even not work out," he said. "We want to be in the government, but that doesn't mean we'll renounce our principles."
Meanwhile, a senior Labor member said his party and Kadima agreed not to disqualify any party from joining the government as long as it accepts the basic government principles. The agreement refers to the rightist Israel Our Home, which Labor rejected in the past.
Olmert and Peretz also apparently agreed that one of two key portfolios, either Defense or Finance, would be handed over to Labor. Olmert has said in the past he would like to keep the Treasury in Kadima's hands. Peretz himself is still debating and despite his preference for the Finance Ministry may settle for Defense.
