(Communicated by the Cabinet Secretariat)

At the weekly Cabinet meeting today (Sunday, 3 February 2013):

1. Prime Minister Benjamin Netanyahu made the following remarks:

"Last night, I called upon the Knesset factions to join me in as broad a national unity government as possible that would unite the public at a decisive time in our history. The supreme mission that a national unity government will face is stopping Iran from arming itself with nuclear weapons. This is all the more complicated because Iran has equipped itself with new centrifuges that shorten the enrichment time. We cannot countenance this process.

Additionally, there are three tasks that we will need to deal with in the first year: The first is to enact a responsible budget and the reforms that will allow us to lower the cost of living. The second task is to significantly increase equality in sharing the burden without causing a rift in the nation. The third mission is to move forward on a responsible and realistic diplomatic process.

We need to deal with these three tasks all at the same time and not deal with only one or two of them. Reality and time demands this and it is possible only with a broad national unity government. Our goal is to unite the nation around these tasks and not divide it. Only as broad a union of forces as possible will enable us to meet these tasks and to ensure the future of the State of Israel.

Today, the Cabinet will hear a review from Negev and Galilee Development Minister Silvan Shalom, who has done major and important work that needs to be summarized. I think that it heralds the unity that we have spoken of, the union of the Negev and the Galilee, the union of the periphery and the center, the cancellation of distances, the creation of centers of life and activity the likes of which we have not seen for many years. I think that this is very welcome action by the Government and it is appropriate that it receive a proper review.

I will also ask Finance Minister Yuval Steinitz and Finance Ministry Accountant General Michal Abadi-Boiangiu to brief us on the raising of resources for the State of Israel, the raising of credit, which was done recently. At this time, I would also ask him to give us a factual macro-economic picture on the state of the Israeli economy. I think that in the past four years, the Israeli economy has been prominent vis-à-vis its achievements in comparison to the western economies and we have much to be proud of. There are things we must improve; this will be done by the next government."

Minister Shalom thanked Prime Minister Netanyahu and said:
"I think that over these four years the Negev and Galilee Development Ministry grew and developed and received major resources to work with thanks to the Prime Minister's focus on the need to join the Negev and the Galilee to the center of the country.

During this period, we directly invested NIS 830 million and participated in over NIS 1.7 billion worth of projects with other ministries. I think that these are considerable amounts, in addition to the other ministries' usual investments in these areas.

The vision of this government, as expressed by the Prime Minister, is to increase operations and bring it about so that there will be more residents in the Negev and the Galilee. Our vision for the coming decade is to bring 300,000 additional residents to the Negev and another 300,000 to the Galilee, and this is alongside young people staying in the areas. We invested great amounts in settlement groups, student villages, in young people who came to live there and in housing discounts to enable young people to stay there and to attract other young people to arrive.

Over these four years we did all that we could so that the Negev and the Galilee could develop. Of course, the two main projects there are: 1) The flagship project in the Galilee – the medical school in Safed, which already has 250 students and which will graduate 130 additional doctors a year. When fully operational, it will have over 1,000 students and will employ 5,000 workers.

The second project, in the Negev, is the IDF's move south and the concomitant civilian move south. This will involve thousands of families moving to live in the Negev along with a major investment in housing, employment, education and infrastructures. All of these will lead to the Negev reaching a situation that is completely different from its current state.

These two projects, alongside many others, will bring the Negev and the Galilee to better places after the four years of prosperity that we have brought to the Galilee and the Negev."

Prime Minister Netanyahu added:

"Our goal is to cancel the periphery. Ours is a small country, among the smallest in the world, and it is absurd that people who live an hour's journey from the center of the country should live in such a different socio-economic reality. First of all, we must see to it that it is an hour's travel; therefore, we greatly invested in transportation in order to shorten travel times.

Second, we enacted many projects that we will soon hear about. I think that they are creating a no less good quality of life in the Galilee and the Negev, which are due to be the next developed and developing areas in the State of Israel.

I think that this is a concept which says that in such a small country as ours there really is no place on the periphery and we are putting this into practice. I would like to tell you, this has been talked about over the years, it has been talked about, talked about and talked about and we have done it and will continue to do it, because this is what we believe in from the depth of our heart. It is correct socially, nationally and economically, and I will also tell you that it is correct from a security point-of-view. At this time, when we are confronted with many challenges, we need to cancel the periphery and allow free, healthy and lively movement for Israeli citizens, young couples and discharged soldiers to the Negev and Galilee. They can find a home with a plot of land. They can travel in a fast train, or on a fast highway, to the center of the country and vice-versa. This is a simple concept, but it requires considerable investment, and we have done it."

2. Vice Premier Shalom briefed the Cabinet on the activity, from 2009-2012, of the two ministries – Negev and Galilee Development, and Regional Cooperation – for which he is responsible.

3. Finance Minister Steinitz and Finance Ministry Accountant General Abadi-Boiangiu briefed the Cabinet on the success of a major recent bond issue.

Finance Minister Steinitz and senior Finance Ministry officials presented comparative data on the Israeli economy and other Western economies from 2009-2013, as well as data on the reduction in unemployment and changes in rates of participation in the labor force, Israel's credit rating, changes in private consumption and the decline in inequality in Israeli society.