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Bethel Finance news:
The war of words between Minister of Defense Ehud Barak and Minister of Finance Yuval Steinitz reached the Knesset Foreign Affairs and Defense Committee today. Barak told the committee, "The attempt by the Ministry of Finance to credit itself with the success of the economy is false. The economy is growing despite the Ministry of Finance not because of it."
Barak recalled that the Ministry of Finance had opposed expanding the budget on the eve of the 2008 crisis yet in hindsight it has been proven that it would have been correct to do so.
Barak insisted that the relatively peaceful security situation was a significant factor in economic growth in recent years and it is unlikely that the social protests could have taken place in the summer without that quiet.
He said, "Attempts to create the false impression that every shekel given to defense is at the expense of other things is blindness because without security there would not be growth, foreign investors won't choose to put their money into Israel and the Israeli economy would not be in its current condition."
Not satisfied with just these words Barak added, "The Ministry of Finance is wrong and probably does not understand the economic reality and the steps required by it. Cuts at the present time and with the current challenges verges on not understanding macroeconomics."
The Minister of Defense warned that anyone who thinks that it is not possible to raise the budget deficit by 0.9% could find himself in a far more dangerous situation, required to expand the budget at a juncture when confidence has been lost in the government being in control of its actions and capable of seeing growth or contraction ahead, identifying challenges, and finding suitable responses."
In response the Ministry of Finance said that it was proud of its economic management in recent years when Israel has been a small island of stability, growth and low unemployment in contrast to the severe crisis in Europe and the US
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