Steinitz: Lose control and we'll end up like Britain

Minister of Finance Yuval Steinitz has been defending the need for budget cuts. Speaking at a press conference today he said, "If we go wild and lose control we might end up like Britain or Spain, not to mention Greece - in another two years."

Steinitz presented the biennial state budget for 2011-2012 and reiterated the need to cut the defense budget, a main target that the Ministry of Finance has set for this budget.

Steinitz said that NIS 3.3 billion would be cut in 2011 and a further NIS 2.3 billion in 2012.

He said, "The basic message is clear: after a dramatic increase in the defense budget of close to 30% over the past five years, we must restrain defense to worry about growth, education and higher education, in order to give a measured addition to encourage growth and strengthen the competitiveness of the Israeli economy, and mainly to abstain from painful cuts."

Published by Globes [online], Israel business news - www.globes-online.com - on July 6, 2010

Steinitz: Lose control and we'll end up like Britain

The Minister of Finance plans NIS 5.6 billion in cuts for 2011 and 2012 and is targeting defense spending.