"We will make major changes in the cost of living, and help for young couples, and we'll cut billions from the defense budget. It's no secret that I support this. But I won’t let the budget be touched," Minister of Finance Yuval Steinitz told “IDF Radio" (Galei Zahal) this morning.
"Any breach of the budget or deviation from our economic policies is liable to end in a crash. My job as finance minister is to be responsible. We'll make changes, but we won't make mistakes that we'll come to regret in a year."
Asked about this morning's sharp fall on the Tel Aviv Stock Exchange (TASE), despite Friday's upgrade of Israel's long-term foreign-currency sovereign rating from AA- to A+ with a "Stable" outlook by Standard & Poor's, Steinitz said, "The finance minister does not comment about daily movement on the TASE. These things are determined by what happens around us and in the world. The holiday gift from S&P does not boost the economy, but is an extraordinary vote of confidence in the Israeli economy and in the government's fiscal discipline."
Steinitz added, "This is the highest rating Israel has ever had, despite what is happened in our neighbors. It helps with the interest on the debt and we'll save billions of shekels a year, which we'll be able to use for social purposes, provided that we maintain the rating for years. The rating upgrade came after years of very hard work by me and many others."
Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011