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Last update - 13:18 25/08/2008
Mofaz aides on budget: Livni buckled under pressure again
By Barak Ravid, Haaretz Correspondent
Tags: Kadima, Budget, Ehud Olmert 

Associates of Transportation Minister Shaul Mofaz on Monday criticized Foreign Minister Tzipi Livni, his main rival in for the Kadima party leadership, for voting in favor of the 2009 budget.

"Again she compromised, again she conformed, again she didn't withstand the pressure and didn't decide what needed to be decided," sources close to Mofaz said of Livni.

The government passed the budget early Monday, after Prime Minister Ehud Olmert managed to secure a 13 to 12 majority in the cabinet in favor.
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The sources said Livni has argued in the past that the budget was "not good" and needed to be changed, but that in the end she did not manage to reach the right decision, and voted in favor.

A deadlock Sunday on the budget vote that lasted for more than 13 hours was reportedly only broken when Olmert threatened to submit his resignation to President Shimon Peres, a move that would have brought down the government, forcing new elections.

By the end of a series of meetings Sunday, it appeared that Olmert would be hard-pressed to reach the majority necessary to pass the budget, after six Labor MKs and four Shas MKs announced that they would vote against the budget.

Vice Premier Haim Ramon (Kadima) abstained from voting.

The main sticking points during the meetings concerned how much would be cut from the promised increase in the defense budget.

The Finance Ministry had proposed two alternatives: A NIS 2.1 billion cut from defense, which would enable smaller decreases in health and welfare, or a NIS 0.9 billion cut, which would require more significant slashes from health and welfare. However, the Defense Ministry not only opposed any cut whatsoever, but demanded an added NIS 2 billion - spread over two years - to compensate for the falling dollar and for the rising prices of fuel, food and other necessities.

Because of next month's Kadima party primary, and the possibility of early elections thereafter, Sunday's debate was even more politicized than usual. Mofaz, one of the two front-runners in the primary, demanded that any decisions on the defense budget be postponed until a new government is formed after the primary. But his main rival, Livni, demanded that the budget be approved Sunday night.

Labor, for its part, reiterated its demand that the budget be expanded rather than cut. In addition, Labor, Shas and the Pensioners all demanded increased funding for projects close to their hearts.

At 7 P.M., a meeting between treasury officials and the Pensioners' ministers ended without results. A subsequent meeting between Olmert and Defense Minister Ehud Barak, who is also head of the Labor Party, was similarly fruitless.

Almost every minister demanded a budget increase for his or her own ministry. Furthermore, representatives of various government agencies, such as the police and the prisons service, came to the meeting to explain their own needs for extra funding.

Nevertheless, defense was the main sticking point. Finance and Defense Ministry officials negotiated for hours, in parallel with the cabinet discussions, with Barak and Finance Minister Roni Bar-On occasionally joining in. But few points of agreement surfaced.

The treasury adamantly opposed compensating defense for rising prices, while defense officials equally adamantly opposed any delay in implementing the Brodet Commission's recommendations for a multiyear budget increase, which the cabinet itself approved just last year.

In his speech to the cabinet, Bar-On pointed out that both of his proposals for cutting the defense budget would still mean that next year's budget in that realm would be higher than this year's in line with the Brodet recommendations. However, part of the increase originally slated for this year would be postponed to next year.

Olmert had opened the session by vowing that whatever happened, the meeting would finish with a vote.

"If we had unlimited funds, there is no doubt that we could all have a very nice party with the budget," he added. "But that isn't the case. There will be no increase in either expenditures or the deficit [beyond what appears in the budget proposal]."

Terming opponents of the budget "loud-mouths, barbarians and interested parties," he continued by saying: "2009 is liable to be very difficult. We must exercise restraint, stability and caution. The economy is liable to deteriorate. The cost of the instant gratification of increased expenditures is liable to be [long-term] loss ... The economy must not be subjected to electioneering games."

Livni echoed this message, adding: "Domestic politics must not be allowed to influence our votes or the economy's stability. Deferring a vote [on the budget] will broadcast a negative message to the economy. Whoever is elected in [the primary in] Kadima can make changes in the budget."

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      1.   Just more proof that kadima/labour is on death bed 03:18  |  Arie 25/08/08
      2.   They should have taken Olmert up on his threat 05:50  |  Dish It Out 25/08/08
      3.   Budge 07:08  |  Hmilton 25/08/08
      4.   Why oh why 07:17  |  Linichka 25/08/08
      5.   WhyNOT to Vote for Livni 08:13  |  Jeremy Kohn 25/08/08
      6.   Despite all... 08:21  |  Esther 25/08/08
      7.   If I resign you know what will happen to you 08:28  |  Nora 25/08/08
      8.   If I resign you know what will happen to you 08:28  |  Nora 25/08/08
      9.   lies,the ministers used this as lame excuse; Olmert Resign,LOL 08:41  |  Avo 25/08/08
      10.   Is not the DEFENSE Budget the most important criteria 09:01  |  The Pathfinder 25/08/08
      11.   Someone please find out and publish 10:05  |  Michael 25/08/08
      12.   For once,sensible talk in the cabinet. 11:10  |  Stephen 25/08/08
      13.   Amazing! ONLY Esther#6 is right; from nos 1 to 11. 11:15  |  S 25/08/08
      14.   6# Esther "Tzipi is learning some important lessons beside him" 19:53  |  Akram Zekaria 25/08/08
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