Nehemia Shtrasler

In a celebratory interview prior to the holiday, Accountant General Nir Gilad (the treasury strongman) revealed that last June, Israel faced a financial crisis equivalent to bankruptcy. An earth-shattering revelation, but not new. Anyone flipping through newspapers from late June 2002 will discover that virtually everything was already known then.

Two months ago, companies that produce cooking oil asked the Trade and Industry Ministry to raise the import tariff imposed on cooking oil. They lobbied for higher import duties by citing the difficult conditions faced by local producers.

One of Benjamin Netanyahu's unofficial advisers is Moshe Leon, who served as director-general of the Prime Minister's Office when Netanyahu occupied that office. Leon regularly appears at the informal meetings held at the Finance Ministry or at Netanyahu's home. Leon advises, expresses support and listens - because friendship is an important value.

The plan. Not only does Amir Peretz oppose Benjamin Netanyahu's plan, he also has a plan of his own. He says he is aware of the budget deficit, and proposes to wipe it out with new taxes and compulsory loans. This is an exceptionally bad plan that would push the economy back into an even deeper recession, increase the brain drain and accelerate unemployment.

Amir Peretz has been through all the strikes and all the negotiations, and nothing can surprise him. He knows all the rules of the game. He knows he has to use all his time, until the very last minute, to squeeze out the maximum amount of drama, the maximum amount of exposure via the media, and the maximum amount of public relations for himself and his party, One Nation.

It has been a fair while since a plan - yet to be put into practice - has earned such credit with the general public. The stock exchange is blooming, yields on government bonds have been significantly reduced and the dollar came and went.

There is no argument that Finance Minister Benjamin Netanyahu has managed to explain to the public that the economic situation is very bad and there should be an emergency plan.

The Industrial Development Bank should have been history long ago. According to a government decision, the bank should have sold its assets and liabilities portfolio by the end of 2002, and closed its doors.

War. Adi Eldar, chair of the Union of Local Authorities, declared a "world war" yesterday against the Finance Ministry in protest against planned cutbacks in the local authorities' budgets.

When Ehud Olmert took up his post as industry and trade minister, some people were worried, because he immediately took to "dealing personally" with certain matters, which is the favorite pastime of ministers.

Membership in the desalination fan club has recently been growing by leaps and bounds. Economists have spoken in favor of desalination, with some adding that this is a worthwile infrastructure investment.

When they talk of investing in infrastructure to boost economic growth, the two main planks of this infrastructure are physical infrastructure and education. Physical infrastructure means roads, trains, ports, electricity, water, sewage and environment protection.

Finance Minister Benjamin Netanyahu proved once again that he is a marketing wizard. He knows how to lecture, persuade, generate sympathy. But when all the numbers are added up, it turns out the budget he presented for 2003 is incomplete

Finance Minister Benjamin Netanyahu proved once again yesterday that he is a marketing wizard. He knows how to lecture, persuade, generate sympathy. He's a master of the turn of the phrase and the knowing gesture.

From time immemorial, every finance minister faced one or two crucial tests at the beginning of his tenure in office, and according to these tests, everyone determines his attitude toward the man.

A few days ago the Finance Ministry received a message from the Americans, which said that the U.S. administration was adamant that Israel should not exceed its budget deficit of 3 percent of GDP for 2003.

The sigh of relief from Amos Yaron, director-general of the Defense Ministry, could be heard echoing from the Kirya in Tel Aviv all the way to the treasury building in Jerusalem, the seat of Accountant-General Nir Gilad.

In December 2002, Israeli democracy went through a watershed experience - for the first time in its history, the defense ministry presented the treasury with its own budget book. Brig. Gen. Muli Ben-Avi prepared the defense ministry budget that contradicted a government decision.

The state faces a brutal NIS 10 billion cut in the 2003 budget. If the army doesn't cut its NIS 5 billion, that means Netanyahu and Sheetrit will have to cut another NIS 5 billion from NII allowances, education, health, welfare and infrastructure.

The Finance Ministry and the Bank of Israel will soon begin talks on the best way to abolish the currency fluctuation band. The treasury will surely demand that in return for getting rid of the band, the central bank should cut nominal interest.

On the eve of the elections, on January 6, 2003, Ariel Sharon stated: "Setting a personal example is extremely important in public leadership and therefore in my next government, there will be no more than 18 ministers.

Shortly before the Likud party primaries, Benjamin Netanyahu visited the Tel Aviv Stock Exchange and spoke to a group of financial market players. Netanyahu explained that Prime Minister Ariel Sharon and Finance Minister Silvan Shalom had run the economy poorly, and he would do it better.