Kadima, Labor draft coalition agreement

Representatives from the Kadima and Labor parties finished drafting a coalition agreement between the two parties, Monday afternoon, based on which Labor will be Kadima's primary partner in a government headed by chairman Tzipi Livni.

The representatives - MK Tzachi Hanegbi of Kadima and Efi Oshaya of Labor - began signing off on the agreement after a 17-hour marathon of negotiations. Labor representatives consulted with the party chairman, Defense Minister Ehud Barak, as well as with Histadrut Labor Federation chairman Ofer Eini.

Livni and Barak are expected to sign a formal version of the agreement at the end of the holiday season.

According to the draft agreement, Barak will have greater influence to issues regarding the cabinet and contact with Syria and the Palestinian Authority. "The summary draft, according to which cabinet decisions will not be made without the support and ratification of Barak, is dramatic," said one of the Labor chairman's associates.

The final hurdle, which led to the extended negotiations, involved a debate about government funding of higher education. Labor demanded a commitment not to increase university tuition, while the Finance Ministry requested alternate sources of funding.  Livni committed to finding alternate funds and, as such, tuition will not increase.

Additionally, Kadima promised to increase the pension payments by 950 million NIS (approximately $260 million) over the next three years. Additionally, it was decided that a committee would be formed to examine the management of pension funds.

Barak also pushed for a commitment to push for changing legislation such that the leader of the opposition would not necessarily need to be a member of Knesset.

The agreement does not meet Labor's demands for another ministerial post in the government or Kadima's demand that the post of chairman of the Knesset's financial committee would be saved for a member of United Torah Judaism.