(IsraelNN.com) Efforts to compromise on the state’s 2009-2010 budget continued late Saturday night, but on Sunday morning the weekly cabinet meeting began with the two sides unresolved. Prime Minister Binyamin Netanyahu said he remained committed to cutting the budget, while Defense Minister Ehud Barak threatened a “political crisis” if his demands were not met.
Netanyahu and Finance Minister Yuval Steinitz announced a week ago they would cut the budget by NIS 14 billion over the next two years in an attempt to stem off an anticipated NIS 45 billion budget deficit. Their plan would still leave room for a budget increase of 1.7 percent a year.
Though the cabinet voted last Sunday strongly in favor of the plan, high profile ministers like Barak, Shas Interior Minister Eli Yishai, and Education Minister Gideon Sa’ar from Netanyahu’s own Likud party strongly oppose the plan.
Barak claims the cuts would affect Israel’s security and that “a responsible leadership” would not consider skimping on defense concerns. National Labor Union Chief Ofer Eini says the plan will hurt workers.
The two sides met Saturday night until 3:00 a.m. according to Barak, who said, “There are still major disagreements between us with regard to the defense of our country and the social fabric of the State of Israel.” Barak added a threat: “If the issues aren’t worked out, we will head towards a serious political crisis.”
The Finance Minister expressed optimism prior to Sunday's cabinet meeting that he can compromise with the Labor Union, but warned that the budget increase will probably grow from 1.7 percent to 2.7 percent a year. The government plans on meeting against Tuesday for final budget deliberations and approval.
Netanyahu also started with optimism at Sunday’s meeting, claiming the budget would be passed. “We face two crises – the global economic crisis, which some say is the worst in 80 years, and our own economic challenges,” he said. “We have to balance economic and defense needs with other needs. We’ve said we will refrain from hurting the weaker segments of the population.”
The prime minister said he had already canceled any budget cuts which would have adversely affected Holocaust survivors, the elderly, and the disabled.
