Barak warns of deep political crisis over budget cuts
Shortly before weekly cabinet meeting, defense minister says there are disputes between Labor ministers, Treasury in regards to 'basic matters related to the State's security and future and the social human fabric'
Defense Minister Ehud Barak said Sunday morning that if the disagreements over the proposed budget cuts were not solved, "we will be facing a deep political crisis." Barak spoke shortly before the weekly cabinet meeting which was slated to discuss the budget cuts suggested by the Treasury.
Prime Minister Benjamin Netanyahu said at the start of the cabinet meeting, "Today we are continuing an important process for the State's functioning. We are facing two major crises – a global financial crisis, the kind of which people say has not taken place for 80 years, and a slew of economic matters and challenged. We must balance between the economic and security-related needs and the other needs in terms of the budget.
He added that the proposed tax on a day of hospitalization would also be cancelled.
"There are still additional issues which must be examined. If we reach an agreement on a package deal with the Histadrut (labor federation), I assume that other budget cuts will be reduced as well. We have a great responsibility for the State's needs and we want to act responsibly."
Barak added that he had met with Prime Minister Netanyahu and Finance Minister Yuval Steinitz for hours Saturday night, until 3 am. "We disagree on basic things which are related, among other things, to the State's security and future and the economic and social human fabric of the State of Israel," he said.
"I am convinced that under these circumstances there is no escape but to expand the budget and provide an answer to the needs on both sides, Barak concluded before entering the cabinet meeting.
Vice Premier Silvan Shalom said before the meeting that the public "doesn’t know who to believe when in comes to the financial crisis. The government must prioritize and decide whether to burden the weak or the strong.
"This situation cannot go on. The public debate, with one minister saying one thing and another contradicting, must stop. The finance minister must meet with all ministers and make a decision," he added.
Steinitz optimistic
On another battle front, Finance Minister Steinitz told Ynet on Saturday evening that he "feels a real desire on the part of (Histradrut Chairman) Ofer Eini and the employers to reach an economic package which will allow the required cuts."
Steinitz expressed his optimism ahead of the intensive discussions which will continue Sunday between the Treasury, Eini and Manufacturers Association President Shraga Brosh.
Deputy Health Minister Yakov Litzman criticized the Treasury's attempt to include extensive budget cuts, which will likely be removed eventually: "We must do things after due consideration rather than start from the end. What they have put in there may damage reliability."
He added that he believed the budget cuts were just a "spin" ahead of a package deal with the Histadrut. "I have a better one – charging one shekel from each person crossing the road," he said cynically.
