Histadrut (General Federation of Labor in Israel) chairman Ofer Eini lined up with the Labor Party against Minister of Finance Yuval Steinitz today, and announced his opposition to the passage of a two-year budget. He said that in 2009 there was a genuine need for a two-year budget, but that things had now changed.
"In 2009 there were elections, and so the budget was passed only in August, so that it was almost impossible to pass a budget only for one year and immediately afterwards to start discussion of a budget for 2010," Eini explained. "However," he continued, "today, when no such constraint exists, we should return to the normal procedure of an annual budget."
What does the chairman of the Histadrut have to do with the state budget? Sources at the Histadrut explained that in the state budget, and particularly in the accompanying Economic Arrangements Bill, there were many matters affecting labor relations, and that the Histadrut therefore had a natural, clear interest in anything to do with the budget.
Meanwhile, at a session of the Knesset Finance Committee today, Governor of the Bank of Israel Stanley Fischer officially announced his support for the idea of a two-year budget. Ministry of Finance budgets division director Udi Nissan told the committee that although it could not be determined whether a bi-annual budget was more efficient than an annual budget, it had added value in its implications for economic stability.
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2010
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