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Israeli Election Update

Campaigning for the March 28th Israeli election is heating up with polls still showing a comfortable lead for Ehud Olmert’s Kadima Party. The most recent polling puts Kadima on 37, Labor on 19 and the Likud on 15. Kadima and Labour have been trading insults over the issue of sleaze whilst in the Likud, Netanyahu is engaged in a campaign against the party’s own unpopular central committee to enable election of the parties Knesset list by primaries rather than by committee.

Kadima have been dropping heavy hints about their plans for unilateral withdrawal in the West Bank if elected. Avi Ditcter, former Shin Bet Chief and now a leading Kadima candidate for the elections, suggested that under Kadima Israel would pull back settlers to the major West Bank settlement blocks and seek to determine Israel’s final borders in the next four years. He told Israeli radio: “in the absence of a Palestinian partner, Israel will have to determine its final borders by itself, and that will involve the consolidation of smaller settlements into settlement blocs". The limited nature of these proposals has been heavily criticised by the Israel left and by Palestinian groups.

Labor leader Amir Peretz has been working hard to improve his image as a leader capable of representing Israel on the world stage. Moroccan born Peretz met with the King of Morocco and Egypt’s President Hosni Mubarak in initiatives aimed at making links with moderate Arab leaders. On Thursday 2nd March he met with President Abbas at the Allenby border crossing with Jordan, the first major Israeli politician to do so since Abbas’ election in January 2005. Peretz made the case that Israel must continue to engage with moderates in the PA, including Abbas and his Fatah party, in order to work for peace.

Tensions flared in Nasereth, on Friday 3rd March where a mentally ill Jewish man Haim Habibi and his Christian wife let off firecrackers and a gas cansister at the Basilica of the Annunciation in protest at having their youngest daughter taken from them by social services. In response on the Saturday, thousands of Israeli Arabs marched in through Nasereth protesting that the Israeli governement was not doing enough to protect them from such attacks and over wider issues of discrimination within Israel society. Israeli President Moshe Katzav and political leaders across the spectrum moves quickly to condem the attack and reaffirm Israel’s commitment to safeguarding religious sites of all faiths.

Histadrut calls a Labour Dispute at the Postal Authority

The Histadrut has called for industrial action at the Israeli Postal Authority, two weeks after the Israeli postal system was opened to competition for bulk mail. Reuven Karazi, head of the Postal Authority union, argues that a government commission has set prices for the Postal Authority (the Israeli equivalent of Royal Mail) too high and without the option of flexibility, making it unable to compete against new companies in the lucrative business mail market. Karazi told Haaretz that "these rates are obligatory for the Postal Authority but not for other organizations that are entering the market, which is now being opened up to competition. The upshot of this is that thousands of employees are likely to be fired by the authority.’

Tensions mount between Israel and Hamas

Tensions have been running high since Hamas’ shock election victory in the January 25th elections. Hamas have been attempting to gain international recognition and strengthen their position within the PA. They have indicated that their preference for Prime Minister is the relative pragmatist Ismail Hanieh, and their legislators have been sworn into their positions in the Palestinian Legislative Council. However, a new government has yet to be formed. Hamas has consistently rejected demands from President Abbas, Israel and the international community to recognise Israel and renounce violence.

Israel has responded to the Hamas victory in a number of ways. Israel has frozen tax payments to the Palestinian Authority as a result of the new Hamas lead PLC. It is important to note that this tax revenue is from customs duties for imports to the Palestinian Authority and cross border VAT payments only. The money collected from these methods are held in an account at the Bank of Israel accruing interest, that would be released to the PA upon Hamas recognising the existence of the State of Israel. Palestinian Authority sources suggest that it would now take until mid-March for it to have received funds from the EU to enable payment of February’s public sector salaries. A UN report has suggested that the non-payment of 73,000 Palestinian security staff could lead to "a rise in criminality, kidnapping and protection rackets".

Israel has kept its Karni Crossing point between Israel and the Gaza Strip closed to goods traffic for a fortnight, citing security concerns. The Israeli government closed the crossing point on February 21st following an unexplained explosion in the area. According to Israeli defence sources, there have been a series of security alerts surrounding the crossing point and there have been continued Quassam rocket attacks on Israeli towns from the northern Gaza strip. Closing the crossing is having a severe economic impact on the Gaza strip with stocks of basic commodities, including flour, running dangerously low. Millions of dollars worth of Palestinian produce destined for export has had to be destroyed.

Russia has held controversial talks with a Hamas delegation led by the movement’s political leader in Damascus Khaled Meshaal. The Hamas delegation met with Russian Foreign Minister Sergei Lavrov and senior officials in Moscow on Friday 3rd of March. The Russian move has been criticised by many Western Governments and Israel for allowing talks without insisting on the pre-conditions that it recognise Israel and abandon violence.