Tuesday, 24 February 2009


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1. Livni Pressured by Olmert, Mofaz
by Hillel Fendel Livni Pressured by Olmert, Mofaz

Kadima’s refusal to enter a national unity government with the Likud is not as absolute as it has been made to appear.  Both outgoing Prime Minister Ehud Olmert (Kadima party) and the #2 man in Kadima, Transportation Minister Sha’ul Mofaz, say a unity government is a good idea. Kadima leader Tzipi Livni, for her part, says, “As of now, we are in the Opposition.”

Livni met with Netanyahu on Sunday night, and said afterwards that major differences between her party and the Likud were still extant.  She is against joining a government headed by Netanyahu.

Prime Minister Olmert, however, feels differently. Meeting on Monday night with representatives of the Jewish Agency, Olmert told them he favors the establishment of a national unity government.  “I’m not hiding my opinion that we need a broad government," Olmert said. "Netanyahu is a patriot, and even when he was Prime Minister in the past, he understood his responsibility to the peace process.”

Olmert and Netanyahu have been political rivals for years.

Just over a week ago, open microphones caught Olmert and Livni talking to each other at the start of a Cabinet meeting.  Olmert said he was going to speak in favor of a unity government, and Livni frowned and requested, “Don’t do that to me.” When they noticed the microphones, she wrote him a note, saying, “I have no intention of being in a unity [governmen headed by Bibi, and do not hint in that direction. What you are saying leads towards that, and this is not Kadima’s position.”

Mofaz Takes Initiative

Mofaz, for his part, seems to have re-awakened his rivalry with Livni.  Speaking with Army Radio Tuesday morning, Mofaz said, “We need not sanctify the idea of sitting in the Opposition.  I’m not among those in the party who see the Opposition as the end-all goal.  We should make supreme efforts to reach an agreement with the Likud about changing the system of government and the continued diplomatic process with the Palestinians and with Syria.”

“We didn’t receive 28 Knesset mandates [from the voter in order to sit in the Opposition,” said Mofaz, who lost narrowly to Livni in primaries in September ’08 for party leadership. 

Asked if he intends to lead a group of “rebel” Kadima MKs into a Netanyahu-led government in the event that Livni insists on remaining in the Opposition, Mofaz said that a party split is not an option. “Sometimes there are differences of opinion,” he said.

Repeat of 2005?

Many remember how Mofaz entered Kadima, however.  In December 2005, just a few hours after he said publicly that he would not quit the Likud and would continue his race to be elected the leader of that party, he announced that he had decided to join Ariel Sharon and his Kadima party.  Within a period of a few days before jumping ship, he both expressed strong criticism of Kadima – saying it had a hodge-podge of opinions and would not “show the proper determination to stand up for Israel's critical needs" – and also said that the politicians who switch from party to party "show a lack of stability and a lack of leadership."

Livni must therefore brace for a possible defection by Mofaz and several other party members whose support he enjoys.  Many observers feel, however, that unless Netanyahu takes pro-active steps to entice the Mofaz group, such a defection is not expected to occur in the coming weeks, if at all.

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2. Rise in Jewish Israeli Births
by Maayana Miskin Rise in Jewish Israeli Births

Good news for Jewish demographics in Israel: the latest statistics released by the Central Bureau of Statistics shows a rising birth rate in the Jewish sector. However, Jewish family sizes are still smaller than those in the Arab population.

The data on families and family size published on Monday in honor of the beginning of “Family Day” showed that the number of Jewish births has increased by 45 percent in less than 15 years, from 80,400 in 1995 to 117,000 in 2008.

At the same time, the Arab birthrate has remained stable at approximately 39,000 a year. As a result, the “fertility gap” between Arab and Jewish families has shrunk to only 0.7 percent, and the proportion of Jewish births has grown from under 70 percent in 1995 to 75 percent in 2008.

Demographer Yoram Ettinger said the statistics were cause for celebration among those who desire a strong Jewish majority in Israel.

Ettinger encouraged the government to further increase the Jewish birthrate by encouraging immigration and repatriation, taking steps to ease life for working parents, developing sparsely populated areas and easing the conversion process.

According to the census, the average Israeli family includes 3.7 members.  Jewish families averaged at 3.5 members, as compared to 4.9 in Arab families.

The data also revealed that there are roughly 101,000 families led by single parents, out of a total of 1,690,000 families with children under the age of 18. In total, approximately 173,000 children and teens are growing up in single-parent households.

The number of single women raising children alone – both single and divorced – shot up by 54 percent in less than a decade. In the year 2000 an estimated 8,400 women headed single-parent households, while that number increased to 12,900 in 2007.

The largest Israeli families on average are located in Judea and Samaria, where the average family numbers 4.5 members, followed by families in the Jerusalem area and in the north with 4.3 and 4.1 members, respectively. Families in central Israel had an average of 3.6 members, compared to 3.5 members per family in the Haifa district, 3.8 members per family in the south, and 3.2 members per family in Tel Aviv.

More than one-third of the Arab families in Israel number six or more members, while only 10 percent of Jewish families include six or more members.

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3. EU Worried About Netanyahu
by Maayana Miskin EU Worried About Netanyahu

Several European Union officials expressed apprehension on Monday as Likud Chairman Binyamin (Bibi) Netanyahu worked to form a coalition. Netanyahu could be less likely than his predecessor, Kadima head Ehud Olmert, to reach a deal including the creation of a Palestinian Authority state in Judea, Samaria and Gaza, they said.

"We could have a rough start,” warned Czech Vice-Premier Alexandr Vondra, whose country currently holds the EU's rotating presidency. “We need to move forward on the [Israel- peace process,” he added.

Swedish Foreign Minister Carl Bilt accused Netanyahu of undermining negotiations already, saying Netanyahu's conditions for those seeking to join his coalition “are clearly incompatible with existing commitments of the peace process.”

"It is very important to send a strong signal that this is not going to be acceptable,” Bilt added, in a warning to EU leaders.

Other EU leaders urged patience, saying the EU should wait and see what Netanyahu did before criticizing.

"Let's wait until we have a result... We are ready to cooperate with a government elected by the people,” said EU Foreign Policy Chief Javier Solana.

Solana joined his colleagues in pushing for progress in Israel's negotiations with the PA, saying, “the time for concentrating only on crisis management is over.. we have to do the conflict resolution as soon as possible.”

The outgoing Kadima-led government held negotiations with the PA for more than a year, beginning in late 2007. The content of the talks was secret.

Netanyahu has attempted to convince Kadima's new head, Tzipi Livni, to join him in forming a centrist unity government, but Livni has rejected his offers, as has Labor head Ehud Barak. Netanyahu still has the option of creating a strongly right-wing government in cooperation with religious and nationalist parties.

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4. Tax Benefits for Olim, Returnees
by Hillel Fendel Tax Benefits for Olim, Returnees

Adding a cherry to the ice-cream Sundae of living in the Holy Land, Israel offers new tax benefits to new immigrants (olim) and returning Israelis.

The innovative reforms include a ten-year exemption on taxes and reporting income and assets from abroad and assistance in establishing a business and finding work.

The Ministry of Immigrant Absorption and the Jewish Agency have launched an extensive PR campaign to inform Jews all over the world, including Israelis living abroad, of the benefits to which they are all entitled. The new program boasts of its simplicity and includes an adjustment period of a year, tax exemptions and help in re-establishing businesses and finding employment.

Immigrants and returning residents will enjoy their first year nearly tax-free; they will not be classified as Israeli residents for tax purposes.  During that year, they will be able to choose and decide whether to remain in Israel and enjoy the remainder of the benefits.

Finance Minister Roni Bar-On stated that the new laws will enrich Israel’s economy with human resources, widen its knowledge base and increase investment. Tax Authority Director Yehuda Nasradishi said the legislation reflects the Authority’s desire to formulate simpler, clearer and more effective legislation.

MK-elect Ze’ev Bielski, Chairman of the Jewish Agency, said, “With the global economic crisis rocking the world to its foundations, especially for those living in the West, each day and every hour is an excellent one to begin planning the future and thinking seriously about Aliyah.”

For more information on the tax benefits, eligibility, sample cases, and more, visit the Immigration Ministry’s website.

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5. New Team To Lead Hamas Talks
by Hana Levi Julian New Team To Lead Hamas Talks

Three men have been tapped to replace Israel's top negotiator, Amos Gilad, who until now has been responsible for representing the Jewish State in talks with Egypt over arrangements for a ceasefire with Hamas terrorists and the return of kidnapped IDF soldier Gilad Shalit.

Gilad was sacked on Sunday by Prime Minister Ehud Olmert for publicly criticizing the government last week in an interview published in the Hebrew-language newspaper Ma'ariv.

Although technically no one has been appointed to replace Gilad as top negotiator for Israel with Egypt, sources in the Prime Minister's Office who announced that one would be appointed "very shortly" told reporters they already knew who had been chosen.

According to the sources, the prime minister's long-time diplomatic adviser, Shalom Turgeman, who was involved in last year's indirect talks with Syria, brokered by Turkey, is one member of the team. Turgeman was appointed by Olmert last month as head of a team to consider ceasefire initiatives that were being proposed during the counterterrorist Operation Cast Lead in Gaza.

Sources said Turgeman has been assigned to work on diplomatic and other aspects of the "calm."

The head of the Israel Security Agency (Shin Bet), Yuval Diskin, will become the second member of the triumvirate, according to sources in the prime minister's office. Diskin, who began his service with the Shin Bet in 1978, became director of the agency in February 2005. "During the worst years of terrorism, he headed the operational region responsible for destroying Hamas military infrastructures throughout Judea and Samaria," reads a Foreign Ministry profile of his credentials.

Diskin will reportedly be tasked with working on a list of Arab prisoners to be exchanged for Shalit. He will also deal in the arms smuggling aspect of the Gaza calm.

Prime Minister's envoy Ofer Dekel, who handled the German-brokered negotiations with Hizbullah terrorists in Lebanon for the return of kidnapped IDF reservists Ehud Goldwasser and Eldad Regev, will complete the team.

A former deputy director of the Israel Security Agency (Shin Bet), Dekel has been already been involved in the negotiations for the return of kidnapped IDF soldier Gilad Shalit, said the sources, who spoke on condition of anonymity due to the sensitivity of the issue. Shalit was kidnapped less than a month before Goldwasser and Regev were abducted, and is still being held hostage by Hamas terrorists in Gaza.

Dekel will continue to be the government's representative in talks aimed at freeing Shalit from captivity.

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6. Fischer to Cut Interest to 0.75%
by Maayana Miskin Fischer to Cut Interest to 0.75%

Bank of Israel Governor Professor Stanley Fischer said Monday that he plans to cut the interest rate to 0.75 percent next month. The poor market performance in late 2008 made the step necessary, he said.

Fischer has cut a total of 3.5 percent off the interest rate in the past year and has expressed willingness to cut the rate to zero if he believes it will help the market.

The decision was met with criticism from two senior members of the Federation of Israeli Chambers of Commerce. President Uriel Lin said interest cuts are “no longer effective” and warned that it could hurt those who keep their savings in bank accounts.

Chambers of Commerce financial committee head Ori Yehudai expressed similar criticism, saying interest cuts had “run their course” as an effective means of dealing with the slow market.

The Bank of Israel has also been buying United States dollars in a bid to stabilize the dollar-shekel rate, and is buying long-term government bonds. 

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7. Rabbi Kahaneman of Ponovezh, 97
by Hillel Fendel Rabbi Kahaneman of Ponovezh, 97

Rabbi Avraham Kahaneman, president of the famed Yeshivat Ponevezh (pronounced Ponovitch) in Bnei Brak, passed away on Monday night after a long illness at the age of 97.  After his funeral, beginning at 11 a.m. on Tuesday, he will be buried in the Ponevezh section of the Bnei Brak cemetery.  He was the son of the yeshiva’s founder, the late Rabbi Yosef Shlomo Kahaneman.

Rabbi Kahaneman began studying in the renowned Mirrer Yeshiva in what was then Poland at the very young age of 16.  He was able to escape the Holocaust by leaving for Israel, and later lived for several years in the United States.  Assuming the burden of administrating his father’s yeshiva in Bnei Brak, he was able to pay off its debts of millions of shekels within six years.

Yeshivat Ponovezh was originally established in Lithuania by the deceased’s father, who re-established it in 1944 in Israel.  He appointed the famed Rabbi Elazar Shach - later to become the recognized leader of hareidi-religious Jewry in Israel - as the full-time Rosh Yeshiva (Dean).  Ponovezh is now one of the leading yeshivot in the world, with over 1,000 students.  Its Beit Medrash (study hall) is famous for a large, beautiful Holy Ark built in 1635, brought to Israel from the Great Synagogue in the Italian city of Lombardie.

Ponovezh suffered a major internal dispute in the 1990's, of which small remnants remain.  The yeshiva's two camps, led by a grandson and a grandson-in-law of the yeshiva’s founder, respectively, occupy separate dormitories, but all students study in the same Beit Medrash and eat in the same dining room.

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