The Begin Doctrine
The Begin Doctrine
Before his designated successor as prime minister of Israel could be known, Menachem Begin appointed his third finance minister, Yoram Aridor, on January 21, 1981. Aridor's appointment was a turning point for the economy. As part of his economic policy, Aridor increased the range of services offered to the public, lowered taxes and prices, and increased the subsidies on basic products. As a result, the public's purchases increased, along with the state's revenues, although inflation rose and the value of the Israeli currency fell. Meanwhile, Begin declared during a gathering in Kiryat Malachi that Israel will strike the terrorists in their bases and denounced German chancellor Helmut Schmidt for his statement that Germany had a moral obligation toward the Palestinians because of the injustice they had suffered upon the establishment of the state of Israel. In October 1979, Begin instructed Chief of Staff Rafael Eitan to prepare an operation to attack the Osirak nuclear reactor in Iraq, ignoring the psychological impact such an offensive would have upon the Arab world.
Keywords: nuclear reactor, Israel, Menachem Begin, Yoram Aridor, economic policy, Helmut Schmidt, Rafael Eitan, Iraq, Germany, inflation
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