The chief point of contention that was stalling an agreement between Kadima and Labor in coalition negotiations was Labor’s demands to increase the budget in the social arena, it turns out.
After representatives of the two parties met Tuesday evening at the Mmaccabiah Village in Ramat Gan, the sides reported significant advances, especially in politico-diplomat matters. Already Wednesday, the first draft of the next government’s Basic Principles is expected, which will summarize the agreements reached up until now.
Kadima, Labor teams around negotiating table (Photo: Yaron Brenner)
Head of the Labor negotiating committee, Professor David Libai, said that Kadima made clear they had no intention of holding any referendum prior to various political processes, and only planned to get government approval with a regular majority. “We made clear that all we ask for is that things be decided in the approved framework, and as for the Basic Principles regarding the economy, we don’t want to break the frame of the budget,” Libai said. He noted that during discussions, the parties refrained from discussing the dimensions of a further withdrawal and the diplomatic processes accompanying it.
Unlike Labor, however, Kadima spokespeople claimed there hadn’t been a significant breakthrough in the negotiations. One Kadima negotiator said, “The main problems lie in financial and economic matter. For example, the budget for children, pensions, manpower companies. Kadima isn’t opposed to these things in principle, but it’s clear that if we agree to all the demands – they will be impossible to implement. The parties make demands worth tens of billions of shekels.”
Kadima’s negotiating teams assessed that most of the issues would be resolved within two to three days, and one way of doing so would be writing up a first draft of the Basic Principles. This schedule matches Prime Minister-elect Ehud Olmert’s agenda for the negotiations.
Both sides said there weren’t any real disagreements over security-diplomacy issues. Libai said, “Without a doubt there were advances.” Regarding minimum wage, there was evidently no agreement between the sides. Labor is demanding a primary increase of NIS 500, which Kadima rejects. Senior Kadima members told Ynet that contrary to Labor’s hopes, the minimum wage cannot be increased to USD 1,000 in the next few years, because such a move would cause unemployment to soar 4-5 percent.
Will Lieberman agree to the diplomatic program?
Earlier, Olmert met with Kadima ministers and told them he had no opposition to giving the internal security portfolio to Avigdor Lieberman, if there is not legal reason preventing the move. Olmert said he viewed such a step positively, but opposed giving the portfolio to another member of the Israel Our Home party.
Olmert also told ministers to ignore reports about the distribution of portfolios, as no decisions have been taken in the matter. With that, he said that he wanted the Interior Ministry remains in Kadima's hands, due to the fact that many heads of councils joined Kadima before the elections.
Kadima is attempting to convince Lieberman to accept the terms outlined in Olmert's speech on March 28 as a base for diplomatic understandings. "We think we can convince him, and the reservations Lieberman expressed won't be included," said a Kadima negations team member. Lieberman demanded international recognition for the withdrawal program, and sought to mention the issue of exchanging territories.
Regarding negotiations with ultra-Orthodox parties, Kadima sources say that the main obstacle are funds for children. Earlier, negotiations team members from the Shas and Kadima parties met.
Shas said that the meeting was held around economic issues and funding for children. Another meeting between the sides will be held on Sunday. Shas said: "Unlike other negotiations, Kadima is frightened by the words budgets for children."