Monday, March 23, 2009

Netanyahu's Coalition: Don't Forget The Economic Repercussions

The discussions we see about Netanyahu's attempt to put together an coalition all seem to focus on how a right wing coalition will deal with the diplomatic issues that it will confront.

David Hazony points out that there are another set of implications to consider as well, as Netanyahu tries to draw in Labor:
At a time when Israel is desperately trying to avoid the economic turbulence of other Western countries, and when peace negotiations seem to have little promise, the concessions Netanyahu might end up making on economics may have a far greater impact on the legacy of the next government than anything that may happen on the diplomatic front.
And if Netanyahu wants to get a sense of the dangers involved, he only has to look at the job Obama is doing.

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