Build-a-budget

It never seems easy to build a budget, but after some tinkering (and some threats to the coalition), Finance Minister Yair Lapid and Prime Minister Benjamin Netanyahu finally have reached a deal.

Yedioth Ahronoth puts the highlights on the front page: Lapid’s bill for no sales tax for first time homebuyers will be passed, the defense budget will get an extra NIS six billion (about $1.64 billion), and no tax hike.

Sever Plotzker writes a piece attacking the proposed budget, saying “there’s nothing left for the citizens.” He writes that anyone who isn’t in the Defense or Finance ministries should be worried about the budget. Raising the deficit to 3.4% of the GDP with no new taxes or budget cuts in the future is not smart financial planning and burdens the citizens. “For years Israel has ranked last of OECD member states where the citizens shoulder the burden of the budget. At the moment it doesn’t seem like we will improve our position in the coming years.”

Over in Israel Hayom, Dan Margalit doesn’t seem too worried about the budget, writing, “All in all: at least we have a budget.” He adds: “the Maastricht Treaty, on the basis of which the European Union was founded, called for a target of 3% deficit. So it’s not too far from the amount that is considered reasonable.”

Margalit goes on to worry that the NIS six billion infusion into the defense budget might not be enough. “The army demanded a large sum, almost twice as large. How can we not give in on this serious matter?” Though he does counter his own question by worrying about wasteful army spending. But in the end, Margalit seems content to have the uncertainty of the budget resolved, at least for now.

The budget makes the front page of Haaretz as well and the paper reports on some of the politicking that happened in the wake of the agreement between Lapid and Bibi. Apparently the Jewish Home party was angry at Lapid, not because of anything in the budget, but rather because the press conference Lapid announcing the deal began on Shabbat.

While all seems to be on track for the budget, Yedioth reports that the the postal service issue is still ongoing with no end in sight. Actually, the paper reports that it could get worse. Workers in the Histadrut labor union is some industries are striking or participating in work slowdowns in sympathy for striking postal workers. What will be affected? Starting on Sunday, people won’t be able to pay police or city fines or transfer ownership of vehicles, and there won’t be any transferring of goods across land borders. The fear is that if the issues are not resolved soon, there could be a general strike before the Rosh Hashanah holiday (which begins Wednesday night).

Interior circle

Israel Hayom reports that Netanyahu has offered the newly vacant Interior Ministry to Gilad Erdan. But it’s not certain that Erdan will accept. He was planning on becoming Israel’s ambassador to the United Nations and the paper reports he was already planning his move to New York. The paper reports that Erdan, who is currently the communications minister, has until the Rosh Hashanah holiday to decide if he’ll accept.

Protective Edge, revisited

On the diplomatic front, Haaretz reports that negotiations are expected to restart between Israel and the Palestinians for a long-term ceasefire in Gaza. The talks are part of the ceasefire agreement that ended fighting between Israel and Hamas, two sides will not meet directly, but rather go through Egypt. Egypt will also host talks between Hamas and the PA to complete the reconciliation of the two sides.

Yedioth also reports on the restarting of the talks and says the government is expected to approve an extra NIS 3 billion (about $820 million) for southern communities. The plan is set to be voted on in a special session on Tuesday and will provide funds for Sderot and the communities surrounding the Gaza Strip.

Israel Hayom has a reputation as being the paper squarely in Netanyahu’s corner and on Sunday it lives up to that reputation. It revisits Operation Protective Edge and goes on the offensive against claims that Jewish Home leader Naftali Bennett was the one who directed the government to destroy the Gaza tunnels.

The paper goes back almost a year to show that Netanyahu (and Defense Minister Moshe Ya’alon) were already working on the tunnels. In October of 2013, Netanyahu directed the IDF to present ways to counter the growing tunnel threat. The rest of the article reads like a play-by-play of all that Netanyahu did over the past year to combat the tunnels (including asking NASA if there was any technology that could help counter the threat). On top of all that, the paper includes a quote from Channel 2 military reporter Roni Daniel who calls out Bennett for his version of the wartime cabinet meetings: “His version is simply not correct, and I don’t say that lightly.”