PM: We're handling economy better than rest of world
In Knesset session on government's economic plans that 'harm weak populations', opposition leader Livni urges Netanyahu to 'be a man' and pull back from proposed VAT raise. Finance Minister Steinitz says 'budget super social, best in years'
The Knesset held a special session on Wednesday to discuss Prime Minister Benjamin Netanyahu's economic plans, at the request of 40 Knesset members.
Knesset members criticized the government, that they said "is harming the weak populations", but Netanyahu remained firm in his belief that "we are in the midst of a global economic crisis and we are operating better than the rest of the world."
Preparations for facing the global economic crisis began during the tenure of former Prime Minister Ehud Olmert's government, but Netanyahu was quick to boast about his government's achievements. "This government entered office seven weeks ago, in the midst of an economic crisis that was left untreated for a long time," he said.
"Our goal was to first bring about stability, to bring a budget to the government within six weeks, and we did it," he added.
The prime minister continued to say, "Our goal was to bring about unity as broad as possible with anyone who desired unity, and we did that also. All these things were the right things to do to lead to stability and growth for Israel's economy in the face of the global economic crisis that has not been treated."
Opposition leader and Kadima Chairwoman Tzipi Livni took the stage after Netanyahu, and, addressing him, said, "You know there is no relation whatsoever between the biennial budget and the crisis. You heard the experts, but didn’t want to return to the Knesset because you didn't want to be blackmailed, because you know your are easily blackmailed."
'Be a man'
Regarding the budget proposal that includes raising value added tax by one percent, Livni said, "You are going to pull back anyway, and it will happen to you at the worst and most inconvenient time. Also now, you are insisting on the wrong point. Regarding VAT, I suggest you be a man and fold."
Livni also commented on the Finance Ministry's decision to suspend a budget cut which stood to affect hundreds of government funded projects linked to various social relief groups. "You decided to zigzag, and I am pleased. As a responsible opposition, every time you zigzag, we are here to provide support," she said.
Meanwhile, Defense Minister Ehud Barak was overheard making some snide comments during Livni's speech.
"Had we been able to bring her into the government, we would have been spared this boring show," he said. "When she was in the government she was silent at least. Look at what frustration and bitterness can do to a person."
A Livni associate later responded to Barak's remarks: "Once a chauvinist, always a chauvinist."
'Black market for fruit and vegetables?'
MK Shaul Mofaz (Kadima) then said, "The social dangers hovering of the State of Israel are no less dangerous than the Iranian threat".
Addressing the prime minister, Mofaz added, "Are you really unaware that placing value added tax on fruits and vegetables is a regressive tax? Have you not learned this?...Is the government planning on encouraging a black market in fruit and vegetable markets?"
Finance Minister Yuval Steinitz responded to Mofaz's criticism, saying, "We added the first financial boost plan to deal with the crisis, after you, for an entire year, ignored the crisis."
The Minister continued to say, "This is a social, and even super social budget, the likes of which we haven’t had in years… The opposition wants to hide the entire truth from the public. The entire truth will prevail. The economic plan will curb recession, keep workplaces and lead to growth."
At the end of the session the Knesset approved Netanyahu's announcement with a majority of 63 votes in favor and 35 opposed.
