2007 budget may be coalition's undoing

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Source: Ha'aretz
September 04, 2006

Disagreements between the Kadima and Labor parties over how to structure the 2007 state budget following this summer's costly Lebanon war may be the undoing of the ruling coalition.

Senior Labor cabinet minister Ophir Pines-Paz told Army Radio Monday, "The 2007 budget holds within it the potential for a highly severe coalition crisis."

At the heart of the matter is how to cover the cost of the recent conflict with Hizb'allah, as well as how to best prepare for the next round of fighting. Whatever the decision, many social welfare programs are expected to pay the price for the increased security needs.

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