Thursday, May 14, 2009

FM Steinitz: Fischer congratulated me on budget; Budget plan - room for improvement, but pleased with the result

(Globes)."I'm very proud of the fact that, within seven weeks of my taking up the post, we have succeeded in formulating an economic plan for halting the recession and unemployment and laying the foundations for economic growth --- a plan that has won backing from almost all professional observers and enthusiastic support for Governor of the Bank of Israel Stanley Fischer," Minister of Finance Yuval Steinitz told "Globes" today.

Steinitz, despite the embarrassing events in the battle over the budget of the past few days, is actually pleased. Very. "Last night, the governor, Stanley Fischer, called me on his way to the airport. He said he welcomed the plan, and that although, looking at the details, it was possible to agree or disagree with some of them, the package as whole was very good. I will even quote to you exactly what the governor said to me: 'At last someone is doing something to deal with the crisis, and in the right direction.'

"I am proud of the fact that, after a year of paralysis, we have managed to achieve an economic package deal in the economy with the Histadrut and the employers," Steinitz added. "The main thing in the package deal is not what each side is giving and what it receives, but the promise of industrial quiet and the joining of hands for the benefit of the economy and the reforms. The main thing is also that all this happened while peace was maintained on all fronts, between the Ministry of Finance and the Bank of Israel, between the Ministry of Finance and the employers, and all to an almost impossible timetable."

On the process, Steinitz said, "We led. We weren't part of the process, we led it, the budget and the economic arrangements bill… of course there was some compromise with the constraints, including political constraints. For example, I wanted to cut NIS 4 billion from the defense budget. It ended with two arbitration meetings with the prime minister and a cut of NIS 1.5 billion. No, I'm not happy about that, but it's natural. I also don't remember a year in which the defense budget didn't end up being thrashed out between the finance and defense ministers with the prime minster as moderator."

How did he feel when he read and heard the criticism leveled at him recently? "I would prefer to read other things, but my feeling is very good," Steinitz says. "The fact that we succeeded where we did… and all in harmony, that's a good feeling. Still, I have to admit: there's a process, and there's a result. As far as the process is concerned, there's room for improvement; but I can be pleased with the result."