The Knesset Finance Committee convened on Monday 24 Marcheshvan again in the hope of addressing Yesh Atid’s Zero VAT bill, the bill that permits buyers of apartments meeting eligibility requirements to do so without paying 18% value added tax. Finance Minister Yair Lapid took part in the meeting to personally explain the merits of his legislation.
During talk of the 2015 state budget, Lapid turned to committee chair, MK Nissim Slomiansky, explaining the budget prepared by his office is “the most socially conscious budget in years”. He praised the additional funding for healthcare (4 billion NIS), as well as the additional funding for welfare (2 billion NIS) and education (3.2 billion NIS). Lapid explained the main guidelines of the budget must be approved as they are as he and his party believe in it and they are presenting a transparent picture of the 2015 working budget as they envision the direction the government must take.
The minister stressed they will not accept any cuts in social funding, education or healthcare. “I prefer that the budget will not be passed rather than to compromise what he and his colleagues feel is essential”. The minister and some of his colleagues have told the press that if the budget as it stands is not passed, the party will indeed bring down the coalition.
Chairman Slomiansky (Bayit Yehudi) decided to discuss Lapid’s Zero VAT bill again, and once again, someone present decided to torpedo the meeting. MK (Yisrael Beitenu) Alex Miller did just that. Slomiansky advised heads of coalition parties to get their acts in order and reach agreement on something.
Realizing the threats looming overhead from the 19-seat strong Yesh Atid party to break from the coalition if the budget is not passed, and the time factor that compels the government to pass a state budget, Prime Minister Netanyahu called a meeting of senior faction members, a meeting that would likely address heading to early elections. However, the prime minister later in the day announced the cancelation of that meeting. The move is seen as sending a message of calm to Lapid in the hope of reaching agreement and passing a state budget.
In response to the proposed state budget, the left-wing opposition Meretz party feels the budget does nothing to address the never-ending increase in the cost of basic items.
(YWN – Israel Desk, Jerusalem)
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2 Responses
Which will accomplish what? Either way Netanyahu will have a right-wing core just under 61 seats, and need to ally with the centrists (Lapid, Livni, etc.) or the Hareidim (who will insist on ending conscription).
Yesh Atid and Sha”s will lose several seats each, the Likud and Habayit Hayehudi will each gain a few seats and Moshe Kachlon’s new party will probably get in and replace Hatnuah in the coalition. This would likely make for a somewhat better and more stable coalition but not sufficiently so as to justify the expense of national elections which usually cost the taxpayer some 1 billion NIS.
For all that, because of recent developments Lapid is now the head of the largest party in the Knesset (and in the coalition) and if Bibi feels that he won’t have a sufficiently stable coalition without the Likud being the largest party we may go to elections anyway.