Israeli Cabinet Engulfed in Infighting Over 2005 Budget and Coalition Government

Strategic Insights -

The Israeli cabinet convened for a contentious session on the 2005 budget, marking another hurdle in Prime Minister Ariel Sharon's efforts to forge a new coalition government. Despite Finance Minister Benjamin Netanyahu's proposal for a Shk267bn (Dollars 59bn, Euros 48bn, Pounds 32bn) budget, his plans for Shk6.3bn in spending cuts ignited intense criticism from within the ruling Likud party. Analysts suggest that the conflict stems as much from a power struggle within the party as it does from setting public expenditure.

Key Takeaways:

  • The Israeli cabinet session on the 2005 budget was marked by intense infighting, with Finance Minister Benjamin Netanyahu facing opposition from within the ruling Likud party.
  • Netanyahu's proposal for a Shk267bn budget and Shk6.3bn in spending cuts was criticized by rivals Ehud Olmert, trade minister and deputy prime minister, and Shaul Mofaz, defence minister.
  • The conflict is perceived as a power struggle within the party, with both Netanyahu and Olmert considered potential successors to Prime Minister Sharon.
  • The proposed coalition government faces opposition from various parties, including labour and ultra-Orthodox groups.
  • Labour party members question the wisdom of entering a government headed by Prime Minister Sharon, while the secular Shinui party has backtracked on its pledge not to serve in an ultra-Orthodox coalition.
  • The stalemate has halted progress towards naming a new government, which had been expected to be formed this week.

Statistics:

  • The proposed 2005 budget is valued at Shk267bn (Dollars 59bn, Euros 48bn, Pounds 32bn).
  • The spending cuts proposed by Netanyahu total Shk6.3bn.
  • The Likud party has 18 months serving in government without passing notable secular legislation.
  • There are potential successors within the Likud party, including Ehud Olmert and Shaul Mofaz.

Sources:

  • "The Israeli cabinet session on the 2005 budget, as reported by _Harvey Morris, Jerusalem"_
  • "Likud party infighting, as reported by _Harvey Morris, Jerusalem"_
  • "Trade Minister Ehud Olmert's criticism of Netanyahu's "Thatcherite" economics, as reported by _Harvey Morris, Jerusalem"_