Steinitz: No €100B bailout for Israel
Finance Minister emphasizes importance of budgetary discipline, cuts to ministries' budgets in light of Eurozone fiscal crisis
The minister responded to recent news about the expected bailout of €100 billion for Spanish banks.
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"Should Israel find itself in Spain's situation, no nation or organization woud give it €100 billion in aid," said Steinitz prior to the cabinet meeting. A source close to the minister said that Steinitz had spoken in response to opposition members who criticized the expected budget cuts.
Steinitz added that Israel was still struggling to protect its economy in an atmosphere of global crisis. "Our goal is to reach a reasonable deficit, and not to exceed the budget in any case," explained the minister.
According to the Bank of Israel, government spending in 2012 has already exceeded the budget by NIS 7 billion due to the defense budget and workers' union contracts.
Far-reaching budget cuts
In order to balance the 2013 budget and prevent an increase in the government's external debt, the Ministry of Finance is expected to present the government with a proposal to undertake some far-reaching budget cuts.
The planned cut of NIS 7-10 billion will include a reduction in stipends as well as additional government activities.
This may include the trimming of government employees' salaries, defense budget cuts, delaying a number of infrastructure projects - mainly paving roads and laying new railway tracks - and postponing the implementation of some of Trachtenberg Committee's recommendations.
