No minister has expressed serious reservations about the austerity measures that will be submitted to the cabinet for approval tomorrow. Prime Minister Benjamin Netanyahu's fiscal package is expected to pass by a large majority.
On Friday, Yisrael Beitenu announced that it would oppose the austerity measures, but over the weekend, Minister of Finance Yuval Steinitz and Yisrael Beitenu chairman and Minister of Foreign Affairs Avigdor Liberman reached a deal to exempt the Ministry of Immigrant Absorption from the across-the-board budget cut, in exchange for the party's support.
Shas also announced that it will oppose the austerity measures, but sources in the haredi (ultra-orthodox) party admit that, after Netanyahu ruled in favor of the haredim over the draft into the IDF, Shas cannot vote against the measures, and that its ministers will probably vote in favor or abstain.
Ha'atzma'ut ministers have not yet decided on how to vote. Its ministers are due to convene tomorrow morning, ahead of the cabinet meeting. The party is critical of the planned cuts for the Ministry of Defense and the Ministry of Industry, Trade and Labor, and believes that the cuts should be cancelled as at the Ministry of Education. Party chairman Minister of Defense Ehud Barak is also demanding that the IDF's multiyear plan will not be affected, so that the IDF can deal with the changing Middle East.
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2012
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