“Immediately after the elections, we’ll activate a growth-encouragement plan, by cutting taxes and investing in infrastructures, while waiting for war in Iraq. Everything will be better after the war,” Minister of Finance Silvan Shalom today told CNN today.
Shalom added that the Likud hoped to form a national unity government with the Labor Party, and would do whatever necessary to achieve it. “However, we mustn’t forget that the narrow right-wing government led by Menachem Begin signed the peace treaty with Egypt, and the narrow right-wing government led by Yitzhak Shamir attended the Madrid conference,” he said.
As for the rising deficit, Shalom told “Globes”, “Even top economists say that in time of war, whether internal or against terrorism, the deficit cannot be reduced below 3%. We’re going to reduce the deficit with the intention of strengthening stability, while simultaneously achieving growth by cutting taxes and investing massively in infrastructure, on the condition that the work is only done by Israelis.”
Responding to a question if he would continue serving as minister of finance after the elections, Shalom said, “I can’t discuss that.”
As for the US loan guarantees, Shalom said, “There is no pressure on Israel.”
Published by Globes [online] - www.globes.co.il - on January 28, 2003