Israel Update for December 2009

Pleasing Uncle Sam

During a speech broadcast live to the nation, the Likud leader explained the rationale behind the decision to ask his cabinet to approve a construction freeze. Netanyahu stressed that he was only proposing "a temporary halt" to construction, pointing out that work would continue unabated on public buildings like schools, medical clinics and synagogues. Construction would also progress on 3,000 apartment units currently nearing completion.

Calling it "a far reaching and painful step," the PM averred that the building moratorium would demonstrate that he and his government are "serious about peace with the Palestinians." He repeated his readiness to negotiate "an historic peace agreement" anytime the Palestinian leadership is finally ready to do so.

Defense Minister Ehud Barak enthusiastically endorsed the housing freeze, which he helped craft. The veteran Labor party leader acknowledged that it was arrived at in close coordination with the United States government, with whom he acted as an interlocutor on behalf of the Likud Premier.

Analysts said Barak was basically repeating what Netanyahu essentially said: Israel has no practical choice other than giving in to the strong White House-led pressure for a settlement freeze. The small Jewish state, especially its core business and security sectors, are loathe to do anything to irritate the elected leaders of America, let alone outright offending Israel's most important strategic and economic ally. Analysts add that this is particularly the case in these tempestuous days when Israel is preparing for a possible nuclear showdown with Iran.

Meanwhile PM Netanyahu was busy during December trying to persuade the main opposition political party, Kadima, to join his colorful coalition quilt. He met with party leader and former foreign minister Tzipi Livni to make his case that Kadima-comprised mainly of former Likud members who followed Ariel Sharon into the new centrist grouping in 2005-should join his broad coalition, if not be folded back into the party's natural Likud home.

Netanyahu noted that Kadima has fewer political differences with the Likud party than does the Labor party that currently sits around the cabinet table. Analysts say the personal animosity Livni feels for the charismatic Likud leader is behind the continuing rift, which might prod some Kadima Knesset members to simply return on their own to their Likud roots.

Enforcing The Ban

Settlement leaders reacted with anger when Defense Minister Barak announced he would hire some 40 new inspectors to enforce the building ban. This came as two dozen local Jewish council heads were served legal injunctions removing their normal authority to issue construction permits until the ten month freeze is rescinded.

Many of the disgruntled leaders and their followers then decided to physically block the inspectors from entering their communities, prompting clashes with Israeli police and paramilitary forces. Netanyahu subsequently met with many of the upset settlement leaders, telling them that while the building ban was "painful," it was also "temporary," and would definitely be lifted late next year.

Thousands of Jewish demonstrators protested the construction freeze in Jerusalem, Tel Aviv and elsewhere. Hundreds gathered just outside Jerusalem on December 7 where they succeeded in temporarily shutting down the main highway linking the two large cities. Police forces worked to reopen the road amid scuffles with many of the irate protestors.

As the Knesset met in special session to discuss the building ban, the financial cost of the move was also under scrutiny. Likud legislator Ze'ev Elkin said research conducted in his office showed that the freeze would cost the government around 500 million shekels (over 100 million US dollars) in lost tax revenues and higher unemployment payments. The government will also need to cover compensation costs for homeowners who are struggling to pay back bank loans on their suddenly frozen property projects.

War Games Amid Fighting Words

The Iranian military staged massive war games in early December aimed at testing the country's ability to protect its far flung nuclear facilities from foreign attack. This came amid continuing defiance expressed by Iran's rogue Shiite leaders in the face of growing international pressure to halt their uranium enrichment programme and come clean on all nuclear dealings.