Identifier
Created
Classification
Origin
04TELAVIV6373
2004-12-15 14:02:00
CONFIDENTIAL
Embassy Tel Aviv
Cable title:  

LIKUD-LABOR TALKS STALLED AS BOTH PLAY HARDBALL

Tags:  PGOV IS GOI INTERNAL 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L TEL AVIV 006373 

SIPDIS

E.O. 12958: DECL: 12/15/2014
TAGS: PGOV IS GOI INTERNAL
SUBJECT: LIKUD-LABOR TALKS STALLED AS BOTH PLAY HARDBALL
OVER CABINET SEATS

Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b,d).

C O N F I D E N T I A L TEL AVIV 006373

SIPDIS

E.O. 12958: DECL: 12/15/2014
TAGS: PGOV IS GOI INTERNAL
SUBJECT: LIKUD-LABOR TALKS STALLED AS BOTH PLAY HARDBALL
OVER CABINET SEATS

Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b,d).


1. (C) The current snag in Likud-Labor coalition
negotiations over which cabinet seats Labor would receive is
likely the result of poker game tactics by both sides.
Embassy contacts do not expect the snag to prevent a
Likud-Labor agreement. Referring to the breakdown in
Likud-Labor talks as a "political game," a Labor Party
spokesperson, Dana Zaidman, told poloff December 15, that
while the two sides have stopped talking, "it is obvious"
that Labor and Likud will eventually find a compromise, "most
likely early next week." Labor's lower-profile budget
demands, including assistance for the elderly, will also be a
part of any agreement. Likud MK Yuval Steinitz's Chief of
Staff, David Sharan, also assured poloff December 15 that
Likud and Labor would "work something out," pointing out that
coalition negotiations "are always like this." Or Pearl,
advisor to Likud MK Ehud Yatom, echoed this view and noted
that negotiations may take a week longer than expected.
Pearl reasoned that Labor cannot be seen as "crawling to the
coalition," hence it is finding something to fight about.
Pearl also stressed that an agreement will be reached because
"no one wants elections."


2. (C) Likud reluctantly agreed December 15 to offer Labor
the Interior Ministry -- provoking angry reactions from Likud
MKs -- but Labor is also demanding Education, Transportation,
and Public Security. Labor aide Zaidman expressed skepticism
that Labor would enter the coalition without portfolios.
Labor MKs Chaim Ramon and Ofir Pines-Paz threatened that
Labor, if not offered its preferred portfolios, may insist on
joining the coalition without designated portfolios and
remain partners only long enough to ensure that
disengagement is implemented. Likud staffer Sharan predicted
that Labor would eventually settle for the Interior Ministry
and several other portfolios, which he did not name.


3. (C) While talks with Labor have stalled, Likud continues
to negotiate with United Torah Judaism (UTJ) and Shas over
their demands for joining the government. UTJ appears the
closest of all the parties to wrapping up a coalition deal
with Likud. A Likud negotiating team member claimed to the
press that UTJ would likely receive chairmanship of the
powerful Knesset Finance Committee if it agrees to join and
may also receive a deputy ministerial position in charge of
religious affairs, a seat that currently rests in the Prime
Minister's office. UTJ may also demand the position of
deputy minister in the Housing Ministry. An agreement
between Likud and UTJ could be reached this week.


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