At the 10th Israel Business Conference today, Minister of Defense Shaul Mofaz revealed that the defense budget for 2005 had been cut by NIS 2.2 billion, compared with the ministry's original request.
Mofaz said for the first time, the defense budget for the coming year had been coordinated in advance with the Ministry of Finance, and the budget cut was made with his consent. This will save arguments and bargaining when the Knesset approves the 2005 budget bill, in contrast to previous years.
Mofaz nevertheless said the budget cut meant the defense establishment would mainly handle current defense operations. He said the budget cut affected future strength, because the IDF had to cut investment in future programs, such as the Merkava Mark IV tank and satellite program, by a quarter.
Mofaz said that if the present situation with the Palestinians persists, the disengagement plan could be carried out through negotiations and coordination with the Palestinian Authority.
Mofaz also emphasized Israel's closer cooperation with Egypt, and that cooperation on the war against terrorism had already been agreed upon. He said cooperation with Egypt was strategically significant, and could involve the deployment of Egyptian forces along the Philadelphi route along the Gaza Strip-Sinai border after Israel withdraws from Gaza, Egyptian training of Palestinian police in the West Bank, and the search for Israeli MIAs in Sinai from the 1973 Yom Kippur War.
The Palestinians today confirmed that they would probably coordinate with the IDF withdrawal from Gaza and northern Samaria. Palestinian Authority Preventive Security head Jibril Rajoub said senior Egyptian officials told him that Israel was prepared to coordinate the withdrawal with the Palestinians.
Published by Globes [online] - www.globes.co.il - on December 6, 2004