The Shas Party appears to have backed down and will not be resigning from the coalition over the treasury�s refusal to increase monthly child allowance payments as the party demanded. Following a round of high-level meetings between cabinet ministers and Shas leaders, including Rav Ovadia Yosef Shlita, it was announced that the issue of the monthly child allowance is a deal-breaker and Shas would break away from the coalition if the party�s demands are not met.

According to a report in the daily Ma�ariv, Shas has not given up and it trying to use political leverage, linking party support for a number of cabinet and fiscal issues to the issue of the child allowance payments.

Shas leaders off-the-record are indicating they will place the matter on hold until the state budget is on the table and then the party�s support will be crucial, providing a more opportune time to address the monthly allowance issue again.

(Yechiel Spira � YWN Israel)