Labor, Kadima launch official talks
Motivated primarily by fear of seeing Likud return to power, formal coalition negotiations kick off between Labor and Kadima; Barak indicates willingness to compromise on budgetary demands en route to joining government under Tzipi Livni
Defense Minister Ehud Barak has been sending thinly-veiled hints for some time now that Labor is prepared to enter serious negotiations with Kadima as the latter tries to cobble together a stable coalition.
On Tuesday the two parties confirmed they were indeed sitting down to official talks. Labor further revealed its top negotiators would be Histadrut Chairman Ofer Eini, former MK Effie Oshaya and attorney Alon Gelhart.
It was also made known that for several days now Eini has been in contact with Livni confidant Tzachi Hanegbi. Eini advocates the formation of a new government (in lieu of elections) as he greatly fears the possibility of seeing Likud Chairman Bibi Netanyahu return to power, and is worried about the market's instability.
There has been no significant progress thus far in the negotiations, Labor officials say. The two sides are scheduled to sit down for more talks on Friday.
On Monday evening Barak indicated once more that he is willing to compromise on Labor's budgetary demands to ensure stability in light of the global economic crisis. "The magnitude and intensity of the current economic crisis and our handling of it must be our top priority," he said in a meeting with Ofer Eini and president of the Manufacturers Association, Shraga Brosh.
Barak hinted he would postpone talks on expanding the state budget's limits to deal with the potential fallout of the international financial crisis – one of Labor's central conditions to joining the coalition.
No progress with Shas, Meretz
Prime Minister designate Livni met earlier Monday afternoon with Knesset Speaker Dalia Itzik. The two discussed recent developments in the political arena and Kadima's efforts to secure a coalition in time. It
was their first meeting since Livni was elected as Prime Minister Ehud Olmert's successor.
Itzik stressed the need to establish an emergency government, particularly in view of the economic crisis.
No progress was noted in the ongoing coalition talks with other parties, with most of the focus on Shas and Meretz.
Shas made clear during meetings with Kadima that it would not join a government intent on putting Jerusalem's sovereignty on the table in negotiations with the Palestinian Authority.
