Israeli Finance Minister Lapid threatens to topple Netanyahu’s government

Clash of Israeli Political Ambitions Fuels Budget ‘Street Fight’

By Alisa Odenheimer

The competing ambitions of Prime Minister Benjamin Netanyahuand Finance Minister Yair Lapid are turning this year’s budget process into a who-blinks-first battle between the leaders of the country’s two biggest parties.

Lapid is threatening to topple Netanyahu’s government, rather than raise taxes — something he has promised voters he won’t do — deepening the standoff between the two over spending plans for next year.

“What we have here is a political street fight,” Yaniv Pagot, chief strategist for Ayalon Group Ltd. inRamat Gan, a Tel Aviv suburb, said by phone. “It’s not the numbers talking, it’s the political agendas.”

The disputes have already held up submission of a draft budget to cabinet. Lapid says the Defense Ministry is asking for too much more money after the recent war in the Gaza Strip. He has said he’d rather see the budget gap increase than add taxes or abandon his flagship program to lift the 18 percent value-added tax for some first-time homebuyers.

“I will bring down the government and won’t raise taxes,” Lapid said in a videotaped interview posted yesterday on the Ynet website.

Read more » Bloomberg

http://www.bloomberg.com/news/2014-09-16/lapid-says-he-ll-quit-israel-government-rather-than-raise-taxes.html

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