Israeli government coalition may fall apart

[GiladS]

Labor threatens: We won't stay in government


Planned cutbacks by Finance Ministry disturb Labor ministers and MKs. Minister Shalom Simhon: 'No way will we stay in government if cutbacks pass.' Education Minister Yuli Tamir sends outraged letter to Finance Minister Abraham Hirchson, in which was written that 'he made a critical mistake.' MK Shelly Yacimovich: 'Kadima wants us out of government'

Attila Somfalvi

Ministers and members of Knesset from the Labor party declare unequivocally Monday that they will not be able to tolerate the cutbacks in the state budget by the Finance Ministry. Some of them are already threatening to break apart the coalition. Agriculture Minister Shalom Simhon said, "there is no way the Labor party will stay in the government if the suggested cutbacks are passed."

Simhon estimated in closed conversations that the party won't be able to accept the current budget and will demand that the Knesset make changes, primarily in regards to university tuition, minimum wage, and a substantial decrease in structural changes in the economy planned for next year.

MK Shelly Yacimovich criticized the budget presented by the Finance Ministry to the government Monday. According to her, "Kadima wants us out of the government. There is no other explanation for this plan." MK Ephraim Sneh said, "the treasury's cutbacks represent damage targeting those who carried the war on their shoulders: Soldiers and students."

Education Minister Yuli Tamir sent an outraged letter to Finance Minister Abraham Hirchson in regards to his intention to raise university tuition by 50 percent in the next four years.

"I was astounded to read in the press that your ministry suggests a raise in the tuition of institutions for higher education without any coordination with me, despite the fact that you know quite well that such a proposal, presented by the Finance Ministry within the framework of the Economic Arrangements Law, hurts students and will result in severe damage to the accessibility of higher education," Tamir wrote in the letter.

Tamir also wrote, "especially irritating is the disgusting attempt to create a sense that there is any sort of connection between the suggested model and the Australian model. This is a manipulation with the intent of creating the impression that this model is acceptable to me or enjoys my support. I am very sorry that your ministry continues to be managed unilaterally, without coordinating or communicating with the Education Ministry. I see this as a severe administrative and moral mistake, which causes damage not only to students, but also to the management of the entire Israeli governmental system.

"I am requesting you to remove the stated proposal from the upcoming Economic Arrangements Law and to open talks with me, with representatives of the institutions of higher education, and with the student unions about the structure of tuition in the coming years."

Even acting Coalition Chairman Yoel Hasson (Kadima) attacked the Finance Ministry's initiative: "I don't intend to cooperate in raising tuition for universities and colleges. That is spitting in the faces of those who risked their lives in the last war and have already paid a heavy price. I will do all in my capacity to thwart this initiative."

Students also understand that it is unlikely these cutbacks will be applied because of Olmert's coalition problems. Chairman of the Student Union, Gal Dei, said, "To everyone who is worried, the plan of the Finance Ministry won't be carried out because of the unstable government."


Link (http://www.ynetnews.com/articles/0,7340,L-3299382,00.html)

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[gilgoul]

Link (http://www.ynetnews.com/articles/0,7340,L-3299382,00.html)

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This budget cannot be applied, it would wreak havvoc in Israel.
If Olmert want's to have the weaker sectors of the economy pay for his bogged war, that cost that much because of his lack of decisiveness, we'll overthrow this governement as fast as it takes to say oups.
Actually, I wouldn't mind to see early elections, but am affraid Bibi would make it to prime minister (he declared he supports this 2007 budget).
To support the economy is one thing, to support the ones who are taking advantage of the economy while contributing to the impoverishing of the people is an other. The middle class in this country is becoming a thing of he past, and no, I don't wan't to see this country engaging in a south american economic profile, with 10% of the population holding 90% of the national wealth.

[Balam]

Too bad that Olmert was a disapoint for the Israeli people, I hope the things goes well from now on.
There´s a couple of things to remark here:
-The Lebanese campaign gave good and bad results.
-The Hezbolah fighters was pushed behind the security line puted by the IDF in Lebanon.
-The shock of the war woke up the UN to put a REAL Peace Force in the border.
But:
-There is still the issue of the kidnapped soldiers,
-The total disarm of hezbolah.

About the economic impact, I think Israel can handle this much better than lebanon :D

If Israel wants to keep their land, they must keep the union, the strenght, and their heritage (as they have been doing since inmemorial times), they must keep together if they want to survive until now :)

[GiladS]

Coalition partners threaten to bolt governmenthttp://www.haaretz.com/hasen/images/0.gif

By Mazal Mualem (mazalm@haaretz.co.il)

http://www.haaretz.com/hasen/images/0.gifThe Labor Party, Shas and the Pensioners are threatening to vote in the cabinet against the budget if it turns out that the social welfare cutbacks are included in the budget book.

Despite the agreement reached on Monday between Prime Minister Ehud Olmert and Finance Minister Abraham Hirchson to rescind plans to raise university tuition, Kadima's coalition partners are threatening a crisis unless the treasury also retracts planned welfare cuts.

Labor Party leader, Defense Minister Amir Peretz, told confidants on Monday that "if they don't revoke the intention to freeze the minimum wage, it will lead Labor to quit the government. That is a red line as far as I'm concerned. It is the central achievement of the coalition agreement."

Labor's ministers are set to convene by week's end to formulate a stand on the budget. "If Olmert wants to preserve the coalition, he will have to back down," Peretz associates said.

Senior Laborites said it looked like Olmert had "put on a show" with the issue of tuition, and that it seemed as though the PM had coordinated with Hirchson, "to make it look like he cares about social welfare."

Sources close to Olmert said Monday that they are not impressed by the threats, and that a similar crisis traditionally accompanies budget debates. The budget will be approved by the government even without Labor and Shas, they said, since the Pensioners are expected ultimately to vote in favor. Olmert's confidants added that while he backs the finance minister, the budget is likely to undergo further changes before Sunday. But if Labor's seven ministers, Shas's four and the Pensioners' two vote against the budget, it will not pass. Shas chair Eli Yishai, the minister of Industry, Trade and Employment, stressed during talks on Monday with political officials that if the budget does not meet the party's welfare demands and the allowances are slashed, the Olmert government will fall.

Yishai took a combative line Monday, saying that Shas would vote against the budget in the cabinet and Knesset, and would quit the coalition. He suggested cancelling the reduction in Value Added Tax to generate additional funds.

Meanwhile, the Pensioners' ministers announced Monday they would vote against the budget if it harms the elderly. Health Minister Yaacov Ben Yizri said his party would not agree to a single violation of its coalition agreement.

"Recovery in the North and the defense establishment cannot occur at the expense of pensioners, the elderly and allowance recipients," Ben Yizri warned.

Kadima ministers too criticized the budget on Monday on social-welfare grounds, saying it would be a serious mistake for Kadima to be the party that hurts the weak segments of society.

Labor's Agriculture Minister Shalom Simhon called for the defense establishment to reduce its demands so the government can tackle urgent social problems, while Science and Sports Minister Ophir Pines-Paz said a combined solution is required to meet defense and welfare needs.


Link (http://www.haaretz.com/hasen/spages/758699.html)

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