Newspaper Page Text
Government crisis resolved
with ministers trading jobs
by Yaacov Ben Yosef
Special to I he Southern Israelite
JERUSALEM —The govern
ment crisis that was apparently
leading to the collapse of Prime
Minister Shimon Peres’ national
unity government has been resolved
in an 1 Ith-hour settlement that
resulted in two Cabinet ministers
switching jobs. Finance Minister
Yitzhak Modai, whom Peres had
insisted had to give up his portfolio
after publicly criticizing the prime
minister, will now become thejustice
minister. Moshe Nissim, who until
now had been justice minister, will
become finance minister.
The settlement has left many in a
state of great bewilderment: both
Modai and Nissim had seemed
suitable for their old jobs; but
Modai is hardly an accomplished
lawyer (though he did study law);
and Nissim admits that he knows
nothing about economics.
What seemed to bring everyone
in line was the proposal put for
ward by some Eikud ministers that
Ariel Sharon, the minister for
commerce and industry, become
the new finance minister. Although
that idea appeared a nonstarter,
some took it seriously enough.
Communications Minister Amnon
Rubinstein, head of the tiny Shinui
party and a Peres ally, announced
he would leave the government if
Sharon got the finance portfolio.
The crisis was sparked on April
4 when Modai gave two newspaper
interviews in which he assailed
Peres for supporting government
aid to Labor Party-oriented enter
prises: Modai, as finance minister,
had been trying to keep the budget
in line and the aid forced extra,
unexpected spending. He accused
Peres of knowing nothing about
economics and of being “a flying
prime minister,” one who travels
too much presumably at the ex
pense of taking care of the
economy.
Peres insisted that Modai be
removed from his job; the Likud
backed its colleague (Modai is a
member of the l.iberal Party which
is an element of the Eikud) and the
threat of a government collapse
loomed. Peres insisted that he
would carry through his threat to
fire Modai at the Sunday Cabinet
meeting.
Likud ministers proposed a var
iety of alternatives, all of which
were designed to find a proper
portfolio to compensate Modai.
Finally, Nissim’s justice ministry
was decided upon; but he resisted,
arguing that he was not fit to be the
finance minister, that he had in fact
voted against the government’s econ
omic program. Pressure was put
on Nissim’s wife by Knesset Mem
ber Ehud Olmert, who had first
raised the idea of a Nissim-Modai
switch. After long consultation
with his wife, Nissim reluctantly
acceded, saying the alternative
would have been early elections
which no one wants.
By late afternoon the formula
was in place, and when the Cabinet
finally met in the evening it spent
little time belore it ratilied the
Yaacov Ben Yosef
settlement.
On Monday, while everyone
agreed that the crisis was over,
there was still one important loose
end to be tied up: the question of
whether Modai will be allowed to
return to the finance ministry after
the October rotation when Peres
and Foreign Minister Yitzhak
Shamir are supposed to switch
jobs.
At first, Shamir said that he had
never promised Peres that Modai
would not return to his old job;
Peres disagreed. Finally, in an ex
change of letters between Peres
and Shamir, the foreign minister
said he would probably not return
Modai to the finance ministry after
October but would reserve the
right to do so. That appeared to
appease Peres.
Shamir, who had been classified
as a real loser after the disruptive,
deadlocked Herut Party conven
tion last month, now emerges with
his image somewhat improved; he
managed to cobble togethera solu
tion that keeps his chances of be
coming prime minister after rota
tion intact.
The Likud in general showed
itself to be weak; while it backed
Modai at first, it went to the brink
and in the end backed down, pre
ferring not to break up the govern
ment and thus give Peres’ Labor
Party the opportunity of canceling
rotation.
Peres does not, however, emerge
unscarred. He can claim that he
got his way by ousting Modai from
the finance ministry without bring-
ingdown the national unity govern
ment. Yet, undoubtedly, Peres will
pay a price for his maneuvering.
Picking on Modai, a most popular
finance minister who was seen as
engineering Israel’s economic re
covery, was hardly wise on the
prime minister’s part.
The next time he chooses some
reason to try to bring the govern
ment to the brink of collapse he
may find less national support
than he would need to end the
unity government.
The Knesset was expected to
approve the Cabinet switch later
this week. Then Nissim faces a set
of tasks as the new finance minis
ter: he will have an easier task than
if he had taken over a few months
ago; the budget has been passed;
inflation is going down steadily.
Now he will deal with new wage
negotiations and a host of other
issues, but none that is expected to
present great problems—at least
for now.
Modai has several key problems
to tackle: one is the sudden arrival
of Shmuel Flatto-Sharon in the
country last night. Flatto-Sharon,
a former Knesset member, had
been out on bail in Italy after serv
ing three months in jail. He had
been awaiting extradition to France
on charges of fraud and tax eva
sion. He had been arrested by
Interpol on Oct. 27 last year while
on a business trip to Italy.
Arriving in Israel on a commer
cial Swiss airliner, he apparently
used a fraudulent passport. Modai
will have to decide whether to
allow Flatto-Sharon the right to
remain in the country. The new
justice minister will also have to
choose a new attorney general, as
Yitzhak Zamir will be leaving
soon.
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PAGE 9 THE SOUTHERN ISRAELITE April 18, 1986