Outwardly, the Prime Minister's Office is denying any crisis between Prime Minister Benjamin Netanyahu and Minister of Communications and Minister of Welfare and Social Services Moshe Kahlon, and claims that there is no reason to attribute too much importance to Kahlon's vote against the austerity plan yesterday. However, in private conversation, Netanyahu's aides say that he is furious.
Political sources say that Netanyahu was surprised by Kahlon's vote, and that he was angry and upset, after Kahlon left the cabinet meeting, leaving a "No" ballot behind him.
Today, the sources expressed surprise at Kahlon's vote, claiming that Netanyahu and Minister of Finance Yuval Steinitz had sought to appease him. "It is not clear why Kahlon, who carries the flag of aid for the low income-earners and the poor, suddenly decided that, when the government is making a very great step on their behalf, to be the mule who kicks the government, instead of being the first to carry the flag," said a source.
He added, "The prime minister rebuked the Ministry of Finance and did not permit a larger VAT hike, or other, harsher measures. He even raised the income tax bracket only on people earning more than NIS 8,881 a month, but Kahlon suddenly decides to vote no. What happened to all his nice remarks that he supports the plan?"
Kahlon's vote may have surprised Netanyahu, but there were plenty of clues from the day before, when Kahlon told Netanyahu that he could not support the austerity plan unless the Ministry of Social Services received a NIS 361 million supplement for the elderly
The talks were handled at two levels: Kahlon personally with Netanyahu; and Prime Minister's Office director general Harel Locker with National Insurance Institute director general Prof. Shlomo Mor-Yosef. During yesterday's cabinet meeting, Netanyahu left the room several times to pursue the talks with Kahlon, and up to the last minute, the Prime Minister's Office believed that they had reached deal.
However, Kahlon says that the money could have come from promoting reforms, such as the one in mobile services, but that the Prime Minister's Office would not agree, which was why he decided to vote against the government. Kahlon and Netanyahu have not spoken since last night's vote.
Netanyahu's aides were furious, after the cabinet vote, they said that if Kahlon votes against the austerity measures in the Knesset, he will be fired.
Kahlon has no intention of giving them the pleasure, and he intends to toe the party line in the Knesset plenum. "As a member of the government, I have ministerial responsibility. I should support this in the Knesset, if it arrives. I hope that the changes I requested will be made. If there is no choice, I will ultimately have to support this, but it is important for me to speak out in the cabinet," he said.
This morning, Kahlon said that he cannot support austerity measures that will harm the elderly. "We have a population with an income level of NIS 1,600, NIS 1,800 to NIS 2,400 a month. These people will pay NIS 60-70, and I am not taking into account future price hikes for bread, milk, rice, and oil. I asked for supplements of a few score shekel for these people, because this money is important for them. This money isn't going for plane tickets or for a Greek weekend holiday. This money is going for these people's necessities. These people receive a pension for their very survival. I thought that these people should receive this supplement. I must say this as openly as possible, the prime minister agrees with me, it wasn't easy for him, and he tried to find a way."
The Prime Minister's Office declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on July 31, 2012
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