Barak edges closer to Livni coalition
Hinting again Labor may be willing to compromise, join Kadima government, defense minister says dealing with current economic crisis more important than party's budget demands. Meanwhile Shas adamant won't sit on gov't willing to negotiate over Jerusalem
"The magnitude and intensity of the current economic crisis and our handling of it must be our top priority," Defense Minister and Labor Chairman Ehud Barak said on Monday afternoon in his meeting with
Histadrut Labor Federation chairman, Ofer Eini, and president of the Manufacturers Association, Shraga Brosh.
Barak hinted once more, as his aides confirmed on Sunday evening to Ynet, that he is willing to postpone talks on expanding the state budget's limits to deal with the potential fallout of the international financial crisis – one of Labor's central conditions to joining the coalition.
Asked if he would indeed consider compromising at the present time, Barak said: "I believe that the most urgent order of business right now is dealing with the economic crisis. All of our (budgetary) demands - pensioners, higher education and defense matters – stand, and we abide by our position that the budget can be expanded, but first we must focus on the crisis at hand."
Barak added that with the global market disaster at Israel's door "the challenge ahead is complicated, and we must deal with it in a responsible and level-headed manner, taking into account that we may need a security net for pension funds and study funds. The citizens of Israel should know and feel the government's backing."
Likud Chairman Benjamin Netanyahu said on Monday evening that it was imperative for the government to intervene in the economic crisis. "If the Likud was the ruling party, its government would have established a safety net for the pension funds of our citizens," the former finance minister said.
"We must invest in growth, not just split up the pie. We must lower taxes, especially corporate income taxes."
Livni meanwhile met with the Quartet's envoy to the Middle East, Tony Blair on Monday evening. "Israel
needs stability – and fast," she said. "The correct way to deal with the crisis requires the elimination of this uncertainty and securing political and economic stability."
Representatives from Kadima and Shas met on earlier in the day to continue coalition talks aimed at bringing the ultra-Orthodox party into a government under Livni.
Shas made clear during the meeting that it would not join a government intent on putting Jerusalem's sovereignty on the table in negotiations with the Palestinian Authority.
