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When Israeli Labor Party leader Shimon Peres traded the foreign affairs portfolio for the Finance Ministry, he also traded headaches: curing the country's ailing economy won't be much easier than making peace. Israel's highly socialized economy suffers from double-digit inflation, lagging exports, shrunken tourism and the...

Author: /time Magazine | Title: Israel: Bitter Pill For Peres | 1/16/1989 | See Source »

The plan calls for deep budget cuts, lower wages and sharply higher prices for food, education and health care. At the same time the shekel has been devalued by 13%. The measures, approved by the Cabinet last week, drew acrimonious opposition from the Histadrut labor federation and Defense Minister Yitzhak...

Author: /time Magazine | Title: Israel: Bitter Pill For Peres | 1/16/1989 | See Source »

Moshe Arens, who is slated to become Israel's new Foreign Minister, has something in common with his predecessor, Shimon Peres: he looks and acts like a gentleman diplomat. But while Peres, the head of the Labor Party, played the moderate during his two years in the post, Arens is...

Author: /time Magazine | Title: Arens: Mr. Hard-Liner | 1/2/1989 | See Source »

Shamir is the clear winner in Israel's battle to control a new and more complicated diplomatic environment. To cement his authority, Shamir refused to repeat the 1984 unity agreement under which each party in turn held the Prime Minister's chair. Reinforcing the government's shift to the right...

Author: /time Magazine | Title: Middle East Saying No to Arafat | 1/2/1989 | See Source »

The U.S. had little to lose in testing the P.L.O.'s sincerity. The Jordanian option, the long-favored attempt by the U.S. and Peres to make King Hussein the surrogate peacemaker for the Palestinians, withered away last July when the King gave up all responsibility for the occupied West Bank...

Author: /time Magazine | Title: Breakthrough : After 13 years of silence, the U.S. agrees to talk with the P.L.O. | 12/26/1988 | See Source »

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