Saturday, October 18, 2008

Shas in the middle

It has been reported that Tzipi Livni of Kadima and Ehud Barak of Labor have concluded an agreement to continue a coalition government. There are few changes from the current one, the main difference is that the role of Barak is increased to "senior" deputy PM. Due to the financial crisis, Barak has agreed to drop Labor's insistence on increased Govt. spending on social issues. But, he demands that the Govt. Livni forms must last at least two years, until the next scheduled elections.
Now this puts Shas in the ideal position of being the deal breaker or maker of the coalition for the Livni Govt. Shas leader Eli Yishai says that the Kadima-Labor deal "distances us from a coalition." But, this is often the starting position in hard-bargaining that lies ahead. Since Livni only has another week to form a Govt. this puts pressure on her, although she could ask for two extra weeks from Pres. Peres to do this. Yishai has several considerations in deciding his response, one is that he also wants more social spending for his poor religious consitutency, particularly the child allowance reinstatements that Shas has promised, that were mostly reduced by Netanyahu when he was Finance Minister. Ironically, these were helping the Arab community in Israel, because they also have large families as well as the poor Jews. Yishai also wants to avoid an election in which Shas might lose seats. But, Shas' former leader Arieh Deri is now waiting in the wings after having left jail (for taking Govt. funds) and if Yishai fails to act, the still popular Deri could replace him. Last night Yishai cancelled his meeting with Livni, putting the situation in suspension, while Livni now has meetings with other potential coalition partners, the left-wing Meretz, the Pensioners and United Torah Judaism.
Leader of the opposition, Bibi Netanyahu, called on Yishai to reject a coalition with Livni and go to elections to determine the true popularity of Kadima. So Shas is now in the middle, and we wait to see which way Yishai will jump and whether or not Livni can form a coalition Govt. with or without him.

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