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Am Ehad: Budget passage means we quit coalition

By Gil Hoffman

Prime Minister Ariel Sharon did not emerge unscathed at the end of a two-month budget battle yesterday, as Histadrut Chairman MK Amir Peretz informed him that his two-man Am Ehad faction plans to quit the coalition.

Peretz told Sharon the government violated its coalition agreement with Am Ehad by passing a budget that freezes the minimum wage, and broke promises to the party by cutting National Insurance Institute allowances.

'The passage of the budget means the end of our participation in the national unity government,' Peretz said.

'The Am Ehad Party cannot remain a partner in a government that takes money from the poor. Our party will continue to help workers and the elderly from outside the coalition.'

Sharon asked Peretz to delay the party's departure until his return from the United States on Sunday.

The party's 700-member central committee will meet that same day to approve leaving the government and Minister without Portfolio Shmuel Avital, who is not an MK, is to tender his resignation to Sharon at Sunday's cabinet meeting.

The prime minister is expected to make another effort to persuade Peretz and Avital to remain in the coalition, but Am Ehad spokeswoman Nili Borenstein said there is nothing Sharon can say that could keep them in the government. Avital's resignation would take effect 48 hours later on Tuesday.

Am Ehad's departure was considered inevitable, because Peretz is up for reelection in the Histadrut next month and needs to take a fighting stance against the government. Borenstein said the resignation and the election are unrelated, and that Am Ehad was able to pass important social laws, because it was part of the coalition.

Peretz pledged that Am Ehad would become a fighting opposition on behalf of workers, the elderly, and the handicapped. Yesterday, he was the featured speaker at a rally of soon-to-be-fired workers from the Bagir textile plant outside the Prime Minister's Office, and he helped arrange a meeting between Sharon and representatives of the handicapped, who have been protesting for increased government stipends.

'The 'Mustache' goes wherever workers are suffering,' Borenstein said, referring to Peretz's trademark.

Am Ehad's plans to join the opposition is bad news for Labor, which has lost hundreds of members to the workers' party. Am Ehad, which views itself as the true Labor Party, is likely to sharpen attacks on Labor for remaining in a government that harms the weakest sectors.

'Labor was supposed to help the workers, but as the workers have realized, they have lost their way,' Borenstein said. 'We are what Labor used to be, the only social-democratic party.'

Aside from Am Ehad, Sharon endured harsh criticism from Labor MKs, many of whom did not show up to vote for the budget. Shas also acted independently and prevented the government from banning private legislation.

The pundits agreed that the victor of the budget battle was Knesset Finance Committee chairman Ya'acov Litzman, who obtained all of his demands and proved to be a dominant force in the Knesset.

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