(Globes)."Guarantees are a tool for which you never know when you'll need to pay. That is why there is no way to estimate their cost. It definitely isn't cost-free. Its one tool of many available to us," Prime Minister Benjamin Netanyahu said a press briefing today in response to a question about the Goshen plan to provide government guarantees for the raising of new non-bank credit..
Minister of Finance Yuval Steinitz was also present at the briefing. He added, "The proposals in the 100-days team's conclusions are not binding on me. Everything is open to discussion."
The message that Netanyahu and Steinitz sought to send today was clear: everything is open, and anything can happen. Nothing has been decided yet.
Netanyahu and Steinitz were asked whether tax rates would fall this year. Netanyahu declined to commit, saying, "You'll hear about tax reform this year, but that doesn’t mean that taxes will fall this year."
Netanyahu stressed the importance of adopting a "strategy of a small country", which he said could make rapid changes. He supported the idea of tax cuts, but refused to commit to a timetable.
Netanyahu strongly denied reports that he had reached an agreement with Labor Party chairman and Minister of Defense Ehud Barak not to cut the defense budget. Commenting on possible cuts in public sector salaries and his commitment to Histadrut chairman Ofer Eini not to make such cuts, but only to freeze public sector salaries, Netanyahu changed his tone to keep his options open.
Netanyahu said, "We agreed that there would be a round table where we will present an economic plan 30 days before presenting it to the cabinet. This body is an advisory body, and it is important because we're seeking collaboration. However, this is only an advisory body. I only promised not to cut public sector salaries without an agreement."
When asked if he could meet all his coalition promises, Netanyahu replied, "We aim to keep all our coalition commitments. I received a budget analysis and I was surprised. The amounts for specific populations are not what has been bandied about."
As for the burning issue of the structure of a capital market regulator, Netanyahu's message was ambiguous. "I don’t know what the right model is, and that is one of the hardest questions," he said. This answer belies reports that he has already agreed to adopt Governor of the Bank of Israel Prof. Stanley Fischer's regulatory model.
