After the 2015 state budget passed its first reading last week, Finance Minister Yair Lapid is threatening if the three elements key to him are not included in the final budget, he will topple the government and compel early elections. The minister stated if his Zero VAT Law, healthcare reforms and funding for social reforms are not approved, he is going to bring down the coalition. Yediot Achronot quotes persons in the prime minister’s inner circle saying it is becoming increasingly evident that new elections are unavoidable, quoting the sources saying “We are preparing for elections in May/June 2015”.
Lapid and his aides are pointing the finger of blame at the prime minister and senior Likud party officials for attempting to sabotage his state budget, especially his flagship legislation, the Zero VAT Law. The Zero Value Added Tax Bill that was approved by the Ministerial Law Committee redefines criteria for young couples buying a first home, permitting them to do so without paying the 18% VAT on the apartment. The prime minister and many economic experts including the Bank of Israel are adamantly opposed to the bill, which be extremely costly for the government in the loss of VAT revenue.
Chareidim oppose the bill because the redefined criteria for eligibility shifts the focus from low-income and a large families to (1) both parents working families and (2) a record of IDF service; both criteria excluding many chareidi couples.
Coalition Chairman MK (Likud) Ze’ev Elkin expressed criticism against Lapid for publically leveling threats to topple the coalition prior to entering into talks towards ageing on the budget. It is reported that since the budget passed its first reading, there has been no contact between the Prime Minister’s Office and the Finance Ministry,
(YWN – Israel Desk, Jerusalem)
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One Response
Lapid is just like Obama. He doesn’t know how and is not interested in negotiating. Very small minds think alike. They both have 0 leadership skills. They think that by threatening people, that will motivate them.