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Laborites: Crisis will spur Livni, Barak to form gov't By Mazal Mualem The urgency of the global financial crisis will spur prime minister-designate Tzipi Livni and Defense Minister Ehud Barak to resolve their dispute over the state budget and establish a Livni-led government, top Labor Party officials said yesterday. The Laborites were speaking after an economic discussion initiated by Livni and Barak - the heads of the Kadima and Labor parties - in an effort to reduce the differences in their positions on the budget. Advertisement Until now, Labor has been calling on the government to exceed the budget limits so it can allocate additional welfare supplements, while Livni wants to stick to the budget. Seven economists who participated in the Livni-Barak meeting said the budget limits were a minor issue compared with the economic crisis at Israel's doorstep. Although the meeting was supposed to be about the state budget, it ended up focusing on the world economic crisis and its impact on the Israeli economy. The economists in attendance - including Dan Ben-David, Avia Spivak, Yaakov Sheinin, Avi Ben-Bassat, Avi Tiomkin and Yoram Gabai - said the government had to act to reduce possible damage, not remain passive. Almost all of them came out against exceeding the budget limits for the sake of welfare supplements, but supported expanding the budget for growth engines such as infrastructure investment. While Livni's backers used the discussion to reinforce her position that it would be irresponsible to exceed the budget limits during an economic crisis, Barak's supporters saw the debate as bolstering their argument that it is necessary to go beyond the funds allotted for the state budget. Good brainstorming The meeting took place at Barak's request; he invited the economists to participate. Both sides described the meeting as a good brainstorming session. Participants said the feeling after the meeting was that both sides need to be more flexible to form a new government due to the economic crisis. Livni supporters said the meeting reinforced the need for stability, while a Labor minister said "there is no doubt that the economic crisis changes the picture." "Both sides must do everything to form a government," the minister added. "It wouldn't be right to go to elections now. Barak and Livni need to be flexible on the budget issue." Still, some Labor officials said the current coalition negotiations were going too slowly. As one of them put it, it was not clear why Livni was "taking her time, not establishing teams or returning to the Labor Party with answers." Shas, meanwhile, said Livni has not given the party clear-cut responses to its demands to increase child supplements. But according to a Livni supporter: "The coalition negotiations are taking place along all kinds of tracks, some of them secret, and not everyone knows everything." Bookmark to del.icio.us   Forgotten peace French FM: I fear distracted world may forget Mideast peace process. Settlers vs. Shin Bet Daniela Weiss: Shin Bet behind attack on left-wing advocate prof. Sternhell.

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