Israel views the passage of Iranian warships through the Suez

PM Netanyahu:  Israel views the passage of Iranian warships through the Suez Canal with utmost gravity and this step, like other steps and developments, underscores that Israel's security needs will grow and the defense budget must grow accordingly

(Communicated by the Cabinet Secretariat)

Reuters archive photo

At the weekly Cabinet meeting today (Sunday), 20.2.2011:

1. Prime Minister Benjamin Netanyahu made the following remarks:

"Over the weekend, US President Barack Obama decided to veto a draft UN Security Council decision condemning Israel. Israel deeply appreciates this decision and we remain committed to advancing peace both with our neighbors in the region and with the Palestinians.  I believe that the US decision makes it clear that the only way to peace is direct negotiations and not through the actions of international bodies, which are designed to bypass direct negotiations.  The most important thing in any negotiations that we conduct is the security component.   The security component is critical to any peace agreement and I think that today, we can see what an unstable region we live in, a region in which Iran tries to exploit the situation that has been created in order to expand its influence by passing warships through the Suez Canal.  Israel views this Iranian move with utmost gravity and this step, like other steps and developments, underscores what I have reiterated in recent years – Israel's security needs will grow and the defense budget must grow accordingly.

In order to meet the foregoing, we must advance, strengthen and stabilize our economy.  Last week, the Central Bureau of Statistics published data on growth, sharp growth in the Israeli economy, in the last quarter.  Naturally, we welcome this. 

here for further details.

5. In order to keep to the deficit ceiling for 2011-2012, pursuant to the 1992 Deficit Reduction and Budgetary Expenditure Restriction Law, in light of the NIS 0.20 reduction in the excise on gasoline (such that the per-liter price to the consumer was reduced by NIS 0.23), and in order to finance the aforesaid reduction in 2012 as well, the Cabinet decided to postpone by one year the reduction in the tax rates on income-earners in the top two deciles.  Finance Minister Steinitz was also directed to consider either the possibility of postponing the planned reduction in the companies' tax by one year or some other change in the tax regime that would maintain the budgetary balance in each budget year.