The elimination of Israel’s eastern front, following the US victory in Iraq, and the low probability of a conventional war in the region, are likely to result in the cancellation of Israel’s future tank, the Merkava 5.
The Ministry of Finance is likely to support the cancellation, but it has not formulated its final 2004 defense budget cut proposals, due for submitting to Prime Minister Ariel Sharon in the coming days.
The ministry is also likely to support reduced procurement of the Merkava 4 tank, as a result of the deep cut in the state budget, and the desire to cut back on non-essential defense projects.
The Israel Defense Forces considered reducing the tank projects, but decided to continue them as part of its preparation for the next war. The Ministry of Defense asserts that local infrastructure for manufacturing key weapon systems, such as the future tank for the land forces, should be preserved.
Sharon will discuss the 2004 budget this week. The Ministry of Finance is demanding a further deep cut, amounting to NIS 30 billion over the next five years, in the defense budget, which is the largest of all the government ministries. The Ministry of Defense is likely to agree to a NIS 15 billion cut.
Published by Globes [online] - www.globes.co.il - on August 31, 2003