Next Israeli Gov't Will Face Tough Fiscal Choices

The 2013 budget will be a tough one, filled with unpleasant tax hikes and spending cuts, but the next government stands a good chance of approving it because the cabinet of freshly minted minsters will have every reason to avoid calling new elections.

One of the first things the next government will have to do is win Knesset approval for a 2013 budget. Under the law it has 45 days to do that or it will be forced to call yet another round of new elections.