Jerusalem, 1 December 1998

CABINET COMMUNIQUE

(Communicated by the Cabinet Secretariat)

The Cabinet today (Tuesday), 1.12.98, held a meeting on economic policy. It was decided that:

1. The Cabinet will discuss core economic objectives, including the inflationary processes, in the second half of January 1999, after it receives full figures for 1998.

2. The Finance Ministry will, at the same time, submit to the Cabinet proposed changes in national budgetary priorities, proposals for additional infrastructure investment, and proposals for resolving the unemployment problem and limiting the number of foreign workers.

The Prime Minister said that the Cabinet has carried out unprecedented cuts in the budget and has held down inflation. He stressed that he has said all along that there is a need for the government to examine objectives with regard to inflation at the end of the year and that the government will do this.