(jpost).Prime Minister Binyamin Netanyahu and Finance Minister Yuval Steinitz on Thursday presented the government's emergency economic plan for 2009 and 2010 in a press conference at the Prime Minister's Office. They will present the plan, dubbed Containment and Momentum, in Sunday's cabinet meeting.
The main points presented in the plan were issues discussed recently, such as tax cuts, budget cuts, fighting unemployment, investment in infrastructure, giving credit to businesses and cancellation of the Goshen Plan, which would give governmental guarantees on corporate bonds.
Tax cuts will begin only in two years' time, the 'negative income tax' incentive program will be expanded, but the plan will not include assistance to capital holders.
Netanyahu explained that "since we are in the midst of a very serious crisis, of global dimensions, and we need and are also able to save the Israeli economy, our mission is two-fold: to preserve jobs and to jump-start the market. We have succeeded in doing this before and we will succeed in doing this again."
"We're in a great crisis, but we must, and we can, save the economy, save jobs, and boost the economy. We've done it before. The economy is like a plane in a dive. We'll stop the fall, after which it will soar upward," said Prime Minister Benjamin Netanyahu at the start of today's press conference to present his economic plan for 2009-10.
Netanyahu went on, "The plan comprises brakes and accelerators. The fact that we know that there are growth engines in itself helps to stop the fall. The plan combines blocking and growth measures. In addition, the most important thing is renew growth."
Netanyahu said, "Our economic policy must take us from freefall to growth. The finance minister and I have held dozens of meetings, mostly at night, and we working together on an agreed-upon strategy.
Regarding his cooperation with Steinitz, Netanyahu said metaphorically that when a plane is diving in free fall, it is important that two pilots man the cockpit.
"Another important thing - it's important to have a pilot, in fact two pilots, and a direction of action. These are critical. Today, we're outlining the principles and thereby lifting a lot of uncertainty. We're collaborating with the Histadrut and the employers, which is a new approach."
Steinitz said, "We're entering a difficult time of emergency. Not only the unemployed and businesspeople are feeling the crisis. Every household feels it. We'll take courageous measures to halt the slowdown and the increase in unemployment, and to boost growth in the near future, although this will not happen immediately, but within a year or two, so that we'll already see renewed strong growth."
Steinitz continued, "We'll emerge from this crisis stronger, with an efficient and strong economy, and with a stronger society. This requires everyone to work together. It requires all of us to join hands, and requires all sectors of the economy. We have two components that are actually one: halting the slide, and the measures that will ensure growth."
Steinitz said he hoped that within a year to two years Israel would see signs of new growth. He emphasized that the plan's outline was being presented only in broad terms since many of its details were still being processed.
