US embassy cable - 05TELAVIV2955

C O N F I D E N T I A L TEL AVIV 002955 
 
SIPDIS 
 
E.O. 12958: DECL: 05/10/2015 
TAGS: EFIN, IS, ECONOMY AND FINANCE, GAZA DISENGAGEMENT 
SUBJECT: FINANCE MINISTRY CONFIRMS GOI DISENGAGEMENT LAW 
DOES NOT SPECIFY DEFICIT AMOUNT FOR 2006 
 
REF: TEL AVIV 2940 
 
Classified By: Economic Counselor William Weinstein for Reasons 1.4 (b, 
d) 
 
1. (C) Finance Ministry staff informed Mission May 11 that 
GOI disengagement legislation specifies a 3.4% deficit 
target, including disengagement expenditures, for 2005 only. 
 This corrects statements made by Finance DG Bachar and by 
other Israeli officials during the Joint Economic Development 
Group (JEDG) meeting on April 18 to the effect that the 3.4% 
target applies to both 2005 and/and 2006.  The correction 
confirms comments made to the Ambassador by MoF DG Bachar May 
9 reported reftel. 
 
2.  (C) Insofar as Bachar also told the Ambassador that the 
GOI would do "whatever it takes" on the fiscal side to make 
disengagement a success, the GOI correction does not 
guarantee an improvement in the 2006 deficit compared to 
2005.  Mission will continue to follow GOI fiscal 
developments closely. 
 
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KURTZER