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This Week in Israel This week the government approved the Treasury's major budget cuts for the year 2002, by a substantial majority. 22 ministers voted in favor of the proposals and 6 against - 5 Shas ministers and Minister for Social Development Shmuel Avital of Am Echad. Following are the main points of the new economic program:
Following the drop in interest rates, the stock market shot up - the Tel-tech index rose 7.5% and the Maof index rose 5.6%. Sharp increases were registered for most stocks, regardless of sector. According to National Insurance Institute calculations, the number of poor people in Israel will increase by 65,000 next year, as a result of the cut in child benefits. Shas ministers walked out of this week's cabinet meeting that discussed the budget, for two hours in protest. All sectors of the economy protested during the week - thousands of Negev residents, pensioners and disabled held stormy protests opposite the prime minister's office in Jerusalem, roads and intersections were blocked. Shas announced that it would vote against the budget proposals in the Knesset. Last night, Minister of Defense Binyamin Ben Eliezer was elected Labor party Chairman and candidate for Prime Minister. Ben Eliezer defeated Knesset Chairman Avraham Burg in a revote. Burg had won the first election on September 4th. Yesterday's revote in 51 ballots which had been disputed after the first vote, gave the Defense Minister a strong majority, after almost all the Druze voters and many Arab party activists, most of whom support Burg, boycotted the election this time around. Speaking at party Headquarters after the count last night, Ben Eliezer described the party's situation by quoting from the poet Zelda: "Our house is in pieces, in pieces" Ben Eliezer said: "As of this evening we must rehabilitate our house. We will work together to restore Labor party leadership of the country". His rival, Avraham Burg, congratulated Ben Eliezer on his victory, but Burg's election team said in response: "defilation and corruption have won the day in the Labor party". The IDF has begun to equip itself with the "Merkava #4" tank, which was developed in Israel and is considered the best tanks in the world. This is the most advanced version of the IDF's combat tanks, and is due to replace some of the tanks in the Armored Corps. It does not have the same features as its three predecessors in the "Merkava" series - it has been considerably improved turning it, into a more lethal weapon on the one hand, and into a safer vehicle for its crew, on the other. Its advanced protective systems are capable of preventing the penetration of mortal shells and anti-tank missiles, and its sensors are capable of detecting the launch of such missiles in advance, including laser-guided missiles. The "Merkava 4" is one of the first tanks in the world capable of firing guided shells, meaning, shells capable of changing their course after they have been fired. India is interested in purchasing the Arrow anti-missile system developed in Israel which to date has not been sold to foreign countries. The American administration, which financed most of the development and manufacturing costs for the system, has informed Israel that it will support sales of the Arrow to India and will even help resolve some of the legal obstacles which may be encountered during negotiations for such a sale. Last year, Israel supplied India with the "Oren Yarok" radar system, which detects and provides warning of surface-to-surface missiles. Six weeks before the assassination of Tourist Minister Rehavam Ze'evi, one of the members of the hit team was arrested in connection with car thefts, however the police had no information tying him to terror organizations. The terrorist also managed to conceal the fact that he had already placed two car bombs in Jerusalem. His involvement in the Ze'evi assassination was exposed by other members of the cell who were arrested. This week, the terrorist Muhamad Salima, was charged in the Jerusalem district court. This week permission was also given to publish the fact that the GSS and Israeli police have arrested an Israeli Arab from the Arab village of Tamra in the Galilee, on suspicion of transporting the suicide bomber responsible for the Haifa bus bombing three weeks ago, in which 15 people were killed. The suspect, 56-year old Awad Lutfi, was interrogated and released under restrictive conditions. 18 years after signing the Vienna Convention, for the physical security of nuclear substances, Israel formally joined the Convention this week. The Convention imposes certain obligations on all countries intended to safeguard nuclear substances in its territory, and lays down safety regulations for the transportation of nuclear substances between countries, so as to make theft more difficult. According to a government statement - "The 11th September terror attacks and the ensuing Anthrax attacks, have raised international awareness of the repercussions of the theft and smuggling of substances which may be used to carry out nuclear terror attacks". Revolution in university entrance exams in Israel: the mandatory psychometric exam is to be abolished for university admittance, and will remain as an option for those who wish to sit the exam. This was agreed at the Knesset Education Committee this week, which held a special session on this subject. The new policy was determined in a document issued by the Committee in conjunction with the universities and Ministry of Education. The universities will replace the exam with a weighted grade of the three external bagrut exams (in Hebrew or Arabic). As a result of this agreement, opposition leader MK Yossi Sarid's proposed bill to cancel the mandatory psychometric exam will be withdrawn.
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