Prime Minister Ariel Sharon told United Torah Jewry and Shas
last week that although he has a majority to approve the
budget without them, he does not intend to pass it before
winning their support.
At the beginning of last week the Prime Minister summoned the
Likud's Finance Committee representatives for a joint budget
meeting with the Finance Minister. Sharon and Silvan Shalom
were there, along with Reuven Rivlin, MKs Yisrael Katz and
Ze'ev Boim, Finance Ministry Director-General Ohad Marani and
Prime Minister Office Manager Uri Shani.
Sharon told the MKs that he had a majority of 65 MKs without
United Torah Jewry and Shas, and the Finance Minister said he
would like to go ahead and submit the budget to the Knesset
as is. They maintained that Shas and UTJ MKs would not
withdraw from the government and from the coalition despite
such a move.
What changed? Why didn't they go ahead?
Apparently the turnaround was due to Yisrael Katz, who
explained to Sharon that the latter was about to make a
mistake that could cost him his job. If Sharon had been about
to disperse the Knesset and move for new elections, explained
Katz, such an approach would have been viable. "Elections!"
exclaimed Sharon. "I didn't say anything about elections."
Then Katz proceeded to explain how such a move would lead to
elections.
"First of all," said Katz, "I am thoroughly convinced that
you won't have a sufficient majority to oust Rabbi Litzman,
the head of the Knesset Finance Committee. Besides, I'm very
skeptical regarding your prediction that Shas and UTJ will
not resign from the government; don't forget how Barak fell.
You are headed toward a move without knowing whether you can
see it through or what the outcome will be. You'd better be
careful," advised Katz.
He continued, saying, "What are they demanding? That the
Child Allowance remains untouched. This does cost money, but
why not impose a tax on the stock market? That would be a
just tax. You can also cut or cancel employers' compensation,
which amounts to a whole lot of money and would allow you to
reduce income tax by 5-8 percent across the board. Your
popularity and the Likud's popularity would skyrocket. Take
economic steps that will leave a mark for many years to come.
You had to compromise on the Negev Law. Fouad brokered it and
Shiri Weitzman received the praise for preserving it. The law
providing tax breaks for Negev residents is mine, but instead
of the public applauding the Likud for this law, it sings the
praises of Labor and Shiri Weitzman.
"In the final analysis, without the chareidim you will not be
able to pass the budget, Fouad will wind up brokering a deal
between you and Shas, and once again he will get all the
credit. So if you want elections, you can forget what I'm
telling you. But if not, reconsider the matter and you'll
realize I'm right."
A few hours later the entire Likud held a meeting at the
Prime Minister's Office, and the issue was brought up. Most
party members sided with Katz, and thus a decision was
reached not to bring the budget to the Knesset without the
support of the chareidi parties.
Finance Minister staff members now deny that there were any
plans to seek budget approval without Shas and UTJ. Meanwhile
Sharon's associates do not deny it outright, but throw the
ball into the Finance Minister's court, stressing that Sharon
was the one who made the decision not to go ahead with the
budget without first obtaining the backing of the chareidi
parties.
