Establishing a new office of Deputy Prime Minister in the Prime Minister's Office, as opposed to the post of Deputy Prime Minister held by Ehud Olmert, requires a director-general, office space, advisors and security.
Labor Party leader Shimon Peres threw a monkey wrench into the nearly-completed coalition deal last night (Sunday), demanding to receive the title of Deputy Prime Minister. The law currently allows for only one Deputy Prime Minister, however, and he is currently Ehud Olmert of the Likud - who refuses to step down.
"It's not a personal matter," Olmert explained. "If, G-d forbid, the Prime Minister should be prevented from fulfilling his duties, it doesn't make political sense for his replacement to come from the Labor Party." Olmert has also been Sharon's top Likud supporter in the government over the past year.
Sharon suggested that Peres be given the title of “Deputy Prime Minister in the Prime Minister’s Office” as a way of getting around Olmert’s stance. Such a move requires a change in the basic government law, which can be effected only with majority approval of the Knesset - a lengthy and uncertain process. Steps are underway, however, for a special Knesset session this Thursday to facilitate and speed up such a move.
Finance Minister Binyamin Netanyahu told the government Sunday that every government office would have to cut back spending by 3% to finance the coalition deal, whose estimated cost is 1.5 billion shekels ($350 million). Costs could go even higher if and when the coalition agreement is submitted to the Knesset. The government has enough reserves to finance about one-third of the extra expenses.
Netanyahu long has promised he will not add new taxes, leaving him no choices other than budget cuts and hiking existing taxes. He already raised taxes on cigarettes after striking an economic agreement with the Histadrut Labor Union earlier this month. Fuel and alcohol are next in line, according to government economic sources.
"The treasury has no money, and the general reserve is already committed," said one expert. He pointed out that the media have publicized the benefits Labor has won for hospitals and medicine subsidies without explaining who will pay.
An across-the-board spending cut will go into effect after final Knesset approval of the 2005 budget. The budget must be passed by March 31, or else new elections must be called.
A more severe strain on financial resources will come from the disengagement/expulsion plan, which will cost about 1 billion shekels ($230 million). The Sharon government already has declared it will present the budget without including spending for proposed compensation or the police and military operations needed to execute the program.
Labor Party leader Shimon Peres threw a monkey wrench into the nearly-completed coalition deal last night (Sunday), demanding to receive the title of Deputy Prime Minister. The law currently allows for only one Deputy Prime Minister, however, and he is currently Ehud Olmert of the Likud - who refuses to step down.
"It's not a personal matter," Olmert explained. "If, G-d forbid, the Prime Minister should be prevented from fulfilling his duties, it doesn't make political sense for his replacement to come from the Labor Party." Olmert has also been Sharon's top Likud supporter in the government over the past year.
Sharon suggested that Peres be given the title of “Deputy Prime Minister in the Prime Minister’s Office” as a way of getting around Olmert’s stance. Such a move requires a change in the basic government law, which can be effected only with majority approval of the Knesset - a lengthy and uncertain process. Steps are underway, however, for a special Knesset session this Thursday to facilitate and speed up such a move.
Finance Minister Binyamin Netanyahu told the government Sunday that every government office would have to cut back spending by 3% to finance the coalition deal, whose estimated cost is 1.5 billion shekels ($350 million). Costs could go even higher if and when the coalition agreement is submitted to the Knesset. The government has enough reserves to finance about one-third of the extra expenses.
Netanyahu long has promised he will not add new taxes, leaving him no choices other than budget cuts and hiking existing taxes. He already raised taxes on cigarettes after striking an economic agreement with the Histadrut Labor Union earlier this month. Fuel and alcohol are next in line, according to government economic sources.
"The treasury has no money, and the general reserve is already committed," said one expert. He pointed out that the media have publicized the benefits Labor has won for hospitals and medicine subsidies without explaining who will pay.
An across-the-board spending cut will go into effect after final Knesset approval of the 2005 budget. The budget must be passed by March 31, or else new elections must be called.
A more severe strain on financial resources will come from the disengagement/expulsion plan, which will cost about 1 billion shekels ($230 million). The Sharon government already has declared it will present the budget without including spending for proposed compensation or the police and military operations needed to execute the program.