Sharon faces possible budget showdown

Labor Party gives ministers green light to vote against budget

Sharon meets Sunday with his Cabinet.

Story Tools

JERUSALEM (CNN) -- Israeli Prime Minister Ariel Sharon told members of his coalition Cabinet Sunday that they must vote in favor of his proposed austerity budget to show Israel's allies -- including the United States -- that it is serious about putting its economy back on track.

His demand came the same day as Israel Army Radio reported that the central committee of Israel's Labor Party gave its parliamentary faction the go-ahead to vote against Sharon's plan.

At Sunday's weekly Cabinet meeting, Sharon repeated that he would oust ministers who fail to back his 2003 budget proposal. A preliminary vote on the budget is set for Wednesday.

"I will not tolerate games or political party tricks," Sharon said, according to the Cabinet Secretariat. "Whoever does not vote in favor of the budget cannot be part of the government."

The Labor Party has threatened in the past to abandon Sharon's coalition government if $147 million destined for Israeli settlements is not diverted to social spending, including pensioners, one-parent families, students and low-income locales.

Sharon was elected prime minister in 2001 and formed a national unity government, a coalition with members from his Likud Party, the Labor Party and several smaller parties in the Knesset.

"Unity is important but national responsibility is more important," Sharon said Sunday. "We all share the responsibility of passing the budget and whoever does not act responsibly -- I will put this simply -- will not be here."

The Knesset voted down Sharon's cost-cutting budget in May. He had proposed the reductions because of increased military spending and a slowdown in the Israeli economy, caused partly by the ongoing battles with the Palestinians.

After the vote, Sharon fired four ultra-Orthodox Shas ministers and several deputy ministers from that party and the United Torah Judaism party because they didn't support him.

In July, Israeli Cabinet minister David Levy resigned over budget concerns. Levy, one of three Gesher party deputies, said budget cuts by Sharon were too drastic.

Iran poll to go to run-off • U.N.: Truck bomb killed Hariri • EU 'crisis' after summit failure • U.S. House votes to keep U.N. dues

CNN/Money: Security alert issued for 40 million credit cards • Bin Laden deputy sends message • U.S. House votes to keep U.N. dues • Iran poll to go to run-off