Labor Party leader Ehud Barak on Sunday met with Premier-designate Tzipi Livni along with a number of economic experts. They worked towards resolving differences surrounding Barak’s demands for funding in the Defense Ministry while seeking to satisfy Livni’s demands that the 2009 budgetary framework be adhered to.
 
Reports indicate significant progress, with Barak aware elections will leave him with a small party, in the single digits, preferring to enter into a Livni-led government with a senior cabinet portfolio.
 
While progress is reported, Barak remains keenly aware of Shas and the lack of progress on this front regarding the party’s demands for the return of increased monthly child allowance payments. Shas leader Eli Yishai has repeatedly stated this monthly child allowance issue is a deal-breaker but it appears Livni will not meet his demands.
 
There is a doubt if Barak will enter a coalition without Shas, realizing such a coalition would lack stability and likely be short-lived, perhaps leaving preferring the painful election option if Shas is not on board.

(Yechiel Spira – YWN Israel)