The Shas Party appears to have backed down and will not be resigning from the coalition over the treasury’s refusal to increase monthly child allowance payments as the party demanded. Following a round of high-level meetings between cabinet ministers and Shas leaders, including Rav Ovadia Yosef Shlita, it was announced that the issue of the monthly child allowance is a deal-breaker and Shas would break away from the coalition if the party’s demands are not met.

According to a report in the daily Ma’ariv, Shas has not given up and it trying to use political leverage, linking party support for a number of cabinet and fiscal issues to the issue of the child allowance payments.

Shas leaders off-the-record are indicating they will place the matter on hold until the state budget is on the table and then the party’s support will be crucial, providing a more opportune time to address the monthly allowance issue again.

(Yechiel Spira – YWN Israel)