General strike paralyses Israel

Israel effectively shut down today as a trade union federation launched an open-ended general strike in protest at the government’s planned budget cuts.

The walkout shut down air and sea ports, schools, the Tel Aviv Stock Exchange, banks, the postal system, buses, trains and government offices.

Talks between the federation and the Finance Ministry broke down over the government’s proposal to cut £1.5bn (€2.25bn) from the budget.

The government claims that the cut is necessary to curtail a widening deficit, which some analysts claim could reach 6% of Gross Domestic Product in the current fiscal year.

Israel’s economy has been hard hit by 31 months of Israeli-Palestinian fighting and the downturn in the high-tech industry.

Schools were closed, hospitals were working on holiday footing, welfare services shut their doors and rubbish was expected to pile up as municipal workers stay home.

Pandemonium broke out at Ben Gurion international airport as travellers tried to move up their flights and leave the country before the strike kicked in.

No flights are entering or leaving the country.

One of those affected was President Moshe Katsav, currently on a visit to Poland.

His office said it was not yet clear if Katsav would be able to return home.

Israelis lined up to withdraw money from Automatic Teller Machines.

With banks on strike it will be impossible to withdraw money once the ATMs run out of cash.

If the strike lasts more than a few days petrol shortages are also expected.

Finance Minister Benjamin Netanyahu was jeered by the opposition as he presented the budget cuts to to parliament, warning of dire consequences if unemployment is not reduced and the financial crisis is not brought under control.

Netanyahu called on the unions to end the strike, calling it “unnecessary” and saying that it was causing ”terrible suffering to the people.”