A worst-case scenario would be the U.S.
cutting $500 million from its $3.15 billion foreign aid to Israel •
Finance minister: The economic difficulties in the U.S. worry us. I hope
they do not hurt us.
U.S. President Barack Obama
at a White House briefing on Friday.
|
Photo credit: AFP |
After weeks of debates that proved fruitless,
U.S. President Barack Obama was forced to sign off on an $85 billion
federal budget cut. And Jerusalem is concerned that U.S. defense aid to
Israel will be hit as a result.
The signed budget cut is one of a number of
proposed "sequestration cuts" to the U.S. budget, and is expected to
slow down the U.S. economy to a limited extent. It constitutes 2.2
percent of the $3.8 trillion total budget of the U.S. for 2013. The cut
will be implemented over several months. But while the cut's effects are
limited, the U.S. workforce is still expected to shrink by 750,000
jobs.
In his weekly radio address, Obama said the current budget problems in Congress could be resolved.
"These cuts are not smart. They will hurt our
economy [and] cost us jobs, and Congress can turn them off at any time,
as soon as both sides are willing to compromise," he said.
As a result of the announced cuts, oil prices fell 1.5% over the weekend.
The cuts will directly affect the U.S. defense
budget, though purportedly the U.S. foreign defense aid and missile
defense (the Arrow and Iron Dome systems) budgets were not marked for
trimming. Given the wide scope of the new cuts, it is possible that U.S.
aid to Israel will be cut. Foreign aid to Israel currently stands at
$3.15 billion. A worst-case scenario would be a $500 million dollar cut
from that budget.
Finance Minister Yuval Steinitz addressed the
reports on Sunday. "The economic difficulties in the U.S. worry us. I
hope they do not hurt us. It's important to remember that the only
country in the last three years that succeeded in swimming against the
current and had growth and a decrease in unemployment was Israel. The
global economic outlook is very tough and therefore we must act
responsibly and boldly and work hard to preserve the Israeli economy and
Israeli citizens. For these very reasons we need a strong and stable
government."
"As the United States' closest ally in the Middle East," Israeli Ambassador to the U.S. Michael Oren said on Friday.
"Israel understands the complex budgetary
challenges the Americans face. We are ready to carry our share of the
burden, while trying to maintain the same projects that are essential to
the security of the State of Israel, among them the Iron Dome."
Joint staff work is said to be underway to
determine the consequences of the U.S. budget cuts. Aside from the
annual aid given to the Israeli Defense Ministry, Congress approved
hundreds of millions of dollars in aid to Israel for purchasing Iron
Dome batteries and continuing development of missile defense systems for
higher altitude projectiles such as the David's Sling system, intended
to intercept medium range rockets, and the Arrow missile defense system,
designed to shoot down intercontinental ballistic missiles.
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