Even as the Prime Minister's Bureau continues to deny any crisis between Prime Minister Benjamin Netanyahu and Minister of Finance Yuval Steinitz, and any plans to replace him, behind closed doors, Netanyahu is harshly critical of Steinitz. Aides say that Steinitz is finished and that Netanyahu will replace him with Minister of Communications Moshe Kahlon.
Netanyahu's aides say that the decision has already been made, and that he is only waiting for the right time to implement it.
If Netanyahu replaces Steinitz in mid-term, it will be perceived as a failure by Netanyahu. However, Netanyahu sees Kahlon's successful reforms in the Ministry of Communications, which have made him the darling of Likud rank-and-file. Netanyahu's aides believe that only Kahlon can rescue him from the government's all time low popularity rating.
Netanyahu's aides say that his realization that social unrest is liable to bring down his government led him to conclude that Steinitz is an easy sacrifice, as he has not delivered the goods, as far as Netanyahu is concerned. "Netanyahu will do anything not to fall, and his answer is Kahlon as finance minister," said an aide.
Conventional wisdom in the Prime Minister's Office holds that, just as is occurring in Israel's Arab neighbors, social unrest will not abate unless drastic measures are taken to change things immediately. Netanyahu apparently believes that Steinitz cannot implement the necessary measures, whereas he considers Kahlon as a tranquilizer for the enraged masses.
Replacing an economics-oriented finance minister with a socially-oriented minister will show the protesters that Netanyahu is dissatisfied with previous policies, and that the new appointment will send a social message.
However, when Netanyahu will make the change is not known. He has no short-term solutions for the housing crisis. The national housing commissions reform, which he calls his "supertanker", and the Israel Land Administration reform, are medium and long-term solutions, and Netanyahu knows that they will not appease the protesters.
Sources inform ''Globes'' that Netanyahu today convened a special meeting to discuss the housing crisis to find measures to help find affordable housing solutions for students, young couples, and discharged soldiers, after earlier telling the cabinet that he will announce new measures within days.
On Tuesday, Netanyahu, Steinitz, and Minister of Housing and Construction Ariel Atias are due to announce short-term housing measures, but if they fail to placate the protesters, Netanyahu will have to come up with more creative measures, and Steinitz's sacrifice is a solution. Netanyahu's aides believe that such an act, even if only declarative at first, should calm the streets, and they, together with Likud officials, are urging it. Netanyahu's whose inability to withstand pressure is known, is listening.
Even though both Netanyahu and Steinitz's bureaus continue to deny any tensions between the two men, the signs of this tensions have been growing in the past few days. At Friday's meeting between Netanyahu, Steinitz, and Atias to find solutions to the housing shortage, Steinitz opposed every measure the other two proposed. Netanyahu's aides were furious that at a time when the Likud needs to come up with operative measures, Steinitz refused to show any flexibility.
Published by Globes [online], Israel business news - www.globes-online.com - on July 24, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011