Labor Party leader Ehud Barak on Sunday met with Premier-designate Tzipi Livni along with a number of economic experts. They worked towards resolving differences surrounding Barak�s demands for funding in the Defense Ministry while seeking to satisfy Livni�s demands that the 2009 budgetary framework be adhered to.
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Reports indicate significant progress, with Barak aware elections will leave him with a small party, in the single digits, preferring to enter into a Livni-led government with a senior cabinet portfolio.
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While progress is reported, Barak remains keenly aware of Shas and the lack of progress on this front regarding the party�s demands for the return of increased monthly child allowance payments. Shas leader Eli Yishai has repeatedly stated this monthly child allowance issue is a deal-breaker but it appears Livni will not meet his demands.
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There is a doubt if Barak will enter a coalition without Shas, realizing such a coalition would lack stability and likely be short-lived, perhaps leaving preferring the painful election option if Shas is not on board.

(Yechiel Spira � YWN Israel)