Defense Minister Amir Peretz opposed Finance Ministry plans to cut child and pensioners allowances under a new draft of the 2007 budget aimed at covering the cost of the war in Lebanon.
During a meeting with Finance Minister Avraham Hirchson, Peretz also vowed to not give up a key labor election pledge to raise the minimum wage. Kadima agreed to Labor's demand to raise the minimum wage under a coalition deal signed after the general elections in March. (Tsvi Lavi)