The Likud and the economy

The Likud central committee's blow to the prime minister will lessen the emergency budget's chances in the Knesset.

All by himself, Prime Minister Ariel Sharon steered himself into his latest embarrassment at the hands of the Likud central committee. His plight is liable to leave its mark on the debate on the emergency budget and shorten the life expectancy of the national unity government. Two tactical errors laid Sharon low: his early mention of a Palestinian state in his Latrun speech, which led to the convening of the Likud central committee, and the unfortunate wording of his alternative motion for backing the national unity government.

On their way to the polling booths, Likud veterans said Sharon had maneuvered them into voting against him against their will. The alternative proposal looked to them like supporting Minister of Foreign Affairs Shimon Peres. It could have been different had Sharon delivered a more inspiring speech focusing on his military achievements in Operation Defensive Shield, and offered an alternative motion – to give him a mandate to finish the war against terrorism. Benjamin Netanyahu’s flat speech presented no real challenge. People in the hall didn’t listen to it. Netanyahu didn’t look good on TV.

The impression is that Sharon may have strengthened his status as prime minister at the expense of his status as the head of the Likud. This will haunt him from now on in everything he does – less in foreign policy, but more in domestic policy. The members of his own party are liable to make his life miserable, starting with the approval of the emergency economic plan. Two Likud representatives on the Knesset Finance Committee, Yisrael Katz and Abraham Hirchson, are among the leaders of the rival camp, which as of yesterday has begun to draw a beeline on Sharon’s leadership, which has been leaning in the direction of the Labor Party.

In the still undecided battle over cutting child allowances, the proper choice now is between the large cut already agreed between the Labor Party and Minister of Finance Silvan Shalom, and continuing the alliance with the haredi (ultra-Orthodox) parties opposing the cut. The Labor Party and the haredi parties are both threatening to break up the national unity government if their position is not accepted. Those who defeated Sharon last night prefer the alliance with the ultra-Orthodox. One way out could be putting the election forward to November, with the possibility of setting up a new central bloc, composed of Likud doves and Labor Party hawks.

Published by Globes [online] - www.globes.co.il - on May 13, 2002

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