Finance Minister Yitzhak Modai announced Wednesday that he would resign from the Cabinet “if the Premier wants it.” He told a packed press conference he made his decision “for the good of the nation” after Premier Shimon Peres told the Labor Party convention opening Tuesday night that he would dismiss Modai.
By stepping down voluntarily, Modai would enable Likud to avoid a crisis that could dissolve the unity coalition government six months before the rotation of power. Peres is required to hand over his office to Likud leader Yitzhak Shamir next October 13, under the coalition agreement.
If he fires Modai he would be in violation of the coalition agreement and Likud would find it difficult to preserve the coalition and retain credibility. The agreement expressly forbids the Premier of one party to fire a Minister of the other. Although Modai’s Likud colleagues responded to his announcement with an outpouring of support, observers believe the Likud leadership was privately relieved by the Finance Minister’s decision.
It would thwart what many believe was Peres’ intention to precipitate the downfall of the unity government so that Labor could try to form a narrow governing coalition with several of the smaller parties or, failing that, call for early elections.
Peres refused to comment Wednesday on Modai’s announcement. There was some consternation at the Labor Party convention, which moved to Tel Aviv Wednesday after its festive opening in Jerusalem, that Modai’s statement was a tactical gambit. He has until next Sunday’s Cabinet meeting to make good on his promise to resign. Peres plans to fire him on Sunday.
Modai said at his press conference that he has “carefully weighed” his decision in light of Peres’ speech to the Labor convention. He said he felt he has come to the “moment of truth” and that the interests of the nation and the economy required him “not to stand in the way as an obstacle” to the existence of the unity government and the implementation of its economic recovery plan.
I am sure the nation does not want it (his resignation) but if the Premier wants it, I will hand back to him my mandate,” Modai said. He said he owed this “to the people” who bore the hardships of the economic austerity program. He made clear that he would not accept another portfolio in the unity Cabinet. He sidestepped a question about whether he would return to the government after the rotation of power next October.
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