Egypt joins Geneva negotiations on Global Plastics Treaty, calls for urgent agreement    Egypt delivers over 30 million health services through public hospitals in H1 2025    Madinet Masr in talks for three land plots in Riyadh as part of Saudi expansion    Egypt's PM tells Palestinian PM that Rafah crossing is working 24/7 for aid    Egypt, Japan discuss economic ties, preparations for TICAD conference    Real Estate Developers urge flexible land pricing, streamlined licensing, and dollar-based transactions    Egypt's Sisi pledges full state support for telecoms, tech investment    EGP inches down vs. USD at Sunday's trading close    EGX launches 1st phone app    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Israeli finance chief expects cuts to defense spending
Israel to cut defense sector spending to reduce budget deficit. Finance Minister told Reuters there are no plans to further raise taxes
Published in Ahram Online on 29 - 01 - 2013

Israeli Finance Minister Yuval Steinitz, fresh from a record-setting sale of Israeli bonds to investors in Florida, said on Monday that balancing the government budget will require "moderate but still significant" cuts to the defense sector.
In an exclusive interview with Reuters, Steinitz, a leading member of the weakened Likud party of hawkish Prime Minister Benjamin Netanyahu, also said there are no plans to further raise taxes in order to hit a deficit target of 3 per cent of economic output.
Parliamentary elections last week returned Likud to the top spot in the 120-member assembly, albeit with 11 fewer seats.
One area "that we will have to make some moderate but still significant cuts is the defense budget, I assume. It is not easy but we did it in the past," Steinitz said during a stopover in New York before flying home.
Israel spends roughly 20 per cent of its budget on defense. It has to find a way to close a 14-billion-shekel deficit.
Steinitz stuck with the 3.5 per cent gross domestic product growth target this year, rising from 3.3 per cent in 2012. He added that it would not be a surprise if economic growth touches 4 per cent in 2014.
The debt-to-GDP ratio is expected to decline to somewhere in the 73-pe rcent range, down from 74.1 per cent in 2011, he said.
One main reason for expecting an economic rebound is the return of cheaper natural gas to power Israel's industry as the Tamar natural gas field off the Mediterranean coast comes online in April. Egypt stopped supplying cheap gas in early 2012.
Steinitz took the positive economic message to Boca Raton, Florida, on Sunday where he spoke at a fundraising dinner for Israel Bonds. The event pulled in a single-evening record $230 million in sales to retail investors and Israel supporters, he said.
Separately, Israel's government sold $2 billion worth of 10-year and 30-year U.S. dollar-denominated debt on Monday, albeit at moderate discounts.
ELECTION COALITION CALCULUS
Steinitz, a former philosophy professor, was upbeat about attracting potential coalition partners and said he expects to play a role in the next government.
"It is quite probable that I will maintain the current position. But it is also possible that I will have another capacity," he said.
Netanyahu's alliance with ultra-nationalists led by former Foreign Minister Avigdor Lieberman won 31 seats in the elections.
However Yair Lapid, a former talk show host who is left-of-center, led the Yesh Atid (There is a Future) party to second place with 19 seats.
Lapid's appeal reflects frustration among secular middle-class taxpayers resentful of shouldering what they see as the burden of welfare-dependent ultra-Orthodox, or Haredi, Jews exempt from military conscription.
Asked if helping trim the budget deficit will include cuts to Haredi welfare, Steinitz said: "We will consider this as well but as I said, I don't want to get into details."
He added that the Haredi recognize they can no longer avoid sharing in the defense and security burden that is a right-of-passage for every other Israeli who serve in the military before heading off to higher education.
Steinitz, who has been finance minister since April 2009, said Lapid and Naftali Bennett, leader of the far-right Jewish Home Party, have similar views on the economy.
These parties, Steinitz said, hold rational positions on how to deal with the economy and promote economic growth. "They understand you have to bake the cake before you can eat it," he said.
It is not clear if these parties would become members of a coalition government as Netanyahu, an obvious choice for prime minister, has not yet been asked to form a government by Israeli President Shimon Peres.
"It is difficult to say," Steinitz said of the Lapid and Bennett parties' participation. "It depends on their ability to compromise."
A new government is possible by late February or early March.
As for any Haredi participation, whose long-standing role as kingmakers in coalition negotiations has been downgraded, Steinitz said he did not know if they would participate.
"It depends mainly on their ability to compromise on things that are very dear to them. I assume that if they are ready to compromise they will be in. If not they will stay out."


Clic here to read the story from its source.