Israel: Government Budget Cuts Defense and Welfare

On Friday, the Israeli Government approved a new two-year budget. However, cuts both in defense and welfare brought criticisms from parts of the coalition. Following the NIS 2.7 billion (about $700 million) reduction in the defense budget, ministers from Israel Beiteinu stormed out of the meeting and Foreign Minister Avigdor Lieberman, the leader of the party, threatened to vote No in the Knesset. Minister of Welfare Isaac Herzog (Labor) also left the meeting before voting.

Speaking to Israel Radio, Public Security Minister Yitzhak Aharonovitch (Israel Beiteinu) said:

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If the government doesn't fund the office, Israeli society will be harmed. There is a need to strengthen the police and the prison service. The ministry can't be run [without additional funding.]

Israel Beiteinu is the senior partner [in the coalition], but we're treated otherwise. I say to the government and to the prime minister: we'll meet in the Knesset. We're voting against the budget - it will not pass!

Shas's leader, Interior Minister Eli Yisha,i announced that he will fight in the Knesset for the increase in welfare funds.

Defense Minister Ehud Barak (Labor) did not target the government but underlined the "challenges faced" by the Israel Defense Forces:

We made a difficult decision, taking into consideration the economic and social situation in Israel. There are consequences to this decision, and I showed them to the cabinet.

Barak added that he hopes the IDF can "stand before the challenges in the resources budgeted to us. The balance between the security budget and the other budgets can bring us to deal correctly with the security and social challenges in Israel."

The IDF released a statement, thanking both Prime Minister Benjamin Netanyahu and Finance Minister Yuval Steinitz (both from Likud).

Following the voting, Steinitz said:

The government approved a proffesional budget, which balances the different needs of the market. After years in which the security budget recieved significant additions, which strengthened the military, the government has chosen to give these additions to the education budget, health and welfare.

My mission is that the coming years will bring a shrinking of social gaps by strengthening the weaker sectors. The 2011-2012 budget will allow the government to plan for the long term and will strengthen the stability and security in the market.

And Prime Minister Netanyahu said:

The budget we compiled today is a responsible and balanced budget, that grants stability to the Israeli economy for the next two years.

The public in every country pays for going over the budget and unchecked spending. It may not be clear when a government goes over the budget, but we see what happened in some European countries. We can't let such irresponsibility happen in Israel.

Gaza Latest: Aid Ship Docks in Egypt but 3 International Investigations on the Way

The Amalthea, carrying aid, entered Egypt's el-Arish port on Wednesday despite the call of Hamas leader Ismail Haniyeh to break the siege of Gaza, "The sea and land convoys must continue. We hope we can depend on Islamic nations to help us lift the blockade."

Following the Amalthea's docking in el-Arish, Israeli Deputy Prime Minister Dan Meridor restated:

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Anyone who wants to bring materials there which are not dangerous materials - munitions, etcetera - can bring them through El Arish, can bring them through the [Israeli] port of Ashdod.

What we want is to set the arrangement for inspections, so we can always check and not allow them to bust their way in.

Then Deputy Foreign Minister Danny Ayalon announced that Israel can consider itself "victorious" in the Libyan ship incident. He said that calls by the European Union and the US for the ship to follow Israel's instructions and not sail to Gaza are a good sign.

However, West Jerusalem's problems may just be starting. Haaretz reports that there will be several meetings amongst high-ranked officials this week Israel's official response to the United Nations' enquiries. Following the Goldstone Report on the Gaza War, Israel faces three new international investigations. Some officials described the situation  as a "barrage".

The most significant enquiry is that of the UN committee charged with examining the credibility of Israel's court system in the wake of the Goldstone Report . Haaretz's Barak Ravid reports:

The inquiry into the Israeli court system was decided on at a March meeting of the UNHRC [UN Human Rights Commission] in Geneva as part of its continuing effort to monitor Israel's response to the Goldstone report. The panel is charged with examining the efficiency, independence, and professionalism of Israel's court system and its adherence to internationally accepted standards. Some Israeli officials have already begun describing it as "a second Goldstone committee."

The committee headed by the German jurist Christian Tomuschat is tasked with monitoring any legal steps taken by the Israeli or Palestinian authorities to implement the Goldstone Report's recommendations. It should begin its work in the next few weeks and submit a final report in October.

Israel's official response to the Goldstone report has been negative, labelling it as "one-sided, legitimizing terrorism". So, if the Netanyahu government decides to cooperate with the Tomuschat committee, it will be a change in strategy.

Two other international committees, one appointed by the UN Secretary General and the other by the UN Human Rights Council, are set to begin work over Israel's May raid on the Gaza-bound Freedom Flotilla.

Israel-Turkey Analysis: Netanyahu Saves Face with Foreign Minister by Snubbing Ankara and Washington (Yenidunya)

The most prominent fallout over the clandestine talks between Israeli Minister of Industry Benjamin Ben-Eliezer and Turkish Foreign Minister Ahmet Davutoglu in Switzerland? It was probably between Israeli Prime Minister Benjamin Netanyahu and his Foreign Minister, Avigdor Lieberman.

Lieberman was furious not only that he had not been informed of the mission but that Netanyahu would even consider sending a senior cabinet minister to hold covert talks with Turks. His argument was that if Israel agreed to compensate the families of those killed in the Israel Navy's raid on a Gaza-bound flotilla, the country would suffer a serious blow to its standing in the region.

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Lieberman's problem not only Israel's "national interests". Pressure has been increasing day-by-day on his shoulders since the majority of the international community, including Washington, is unhappy with the Foreign Minister's position.

And it is not external powers who are displeased. Netanyahu and Defense Minister Ehud Barak see their supposed colleague as a hindrance to manoeuvres with Palestinians and confrontation of the Hamas issue, adding to Israel's isolation from the international community.

Of course, Lieberman knows what is on Netanyahu's mind. "The foreign minister takes a very serious view of the fact that this occurred without informing the Ministry of Foreign Affairs," Lieberman's office said in a statement immediately following the revelation of the Ben Eliezer-Davutoglu talks. "This is an insult to the norms of accepted behavior and a heavy blow to the confidence between the foreign minister and the prime minister."

Haaretz reports, from a source close to Lieberman who has spoken with him in recent days, that the Foreign Minister has been disturbed by Netanyahu's behavior for quite some time. According to the source, Lieberman is angry over what he sees as the Premier's legitimization of the global boycott. Indeed, in an interview with Israel Radio on Thursday morning, Lieberman criticized the premier for coordinating the Turkish-Israeli meeting with both Defense Minister Barak and the White House.

When the meeting came to light, Netanyahu had to step back. He apologised to Lieberman, and they met on Friday. Offices of the two men said that they had agreed to work with complete coordination in the future.

Yet this supposed reconcilation still sat alongside the report from Turkish media that Ben-Eliezer had indicated to Davutoglu that Israel was rethinking its refusal to compensate and apologize to the families of those killed in the 31 May 31 on the Freedom Flotilla.

That report had to be pulled back. Ben-Eliezer's bureau said, "We have no plans to do that, and the minister did not promise anything to that regard during his meeting with the Turkish Foreign Minister two days ago." Netanyahu spoke even more sharply, telling Israeli television that the covert meeting was a Turkish "provocation" and insisting that there would be no apology or compensation for the Flotilla confrontation.

But if Netanyahu had repaired relations with Lieberman, he may have done so at the cost of his relations with the US. Haaretz reports, from Israeli sources, that Washington was the organizer. The US had already warned both allies not to compete in the region and sent the signal that former Congressman Robert Wexler, one of the founders of the Turkish-American Friendship Group in the Congress, could be the new ambassador to Israel.

After the Ben-Eliezer meeting with Davutoglu, Washington emphasised the necessity of discussion between its two allies. State Department spokesman Philip Crowley said:

We certainly support this kind of dialogue that hopefully can help repair the fractures that have existed in recent weeks and months between the two countries.

We have had conversations with both countries individually. In those conversations, we have reinforced that a relationship between Turkey and Israel is not only in the best interest of the region, it is in the interest of -- and supports our interests in the region as well.

So, having effectively withdrawn his secret initative, having snubbed Turkey and possibly the US to save face with Lieberman, what next for Netanyahu?