Israeli Finance Minister Mr Sylvan Shalom will present an emergency economic plan to Israeli Prime Minister Ariel Sharon today.
The cost of war will make further inroads into already perilous Israeli finances ahead of likely US-led strike on Iraq.
Central to the plan is a cut of 10 to 14 billion shekels (€2 billion to €3 billion) from government spending, Israeli radio is reporting.
Several structural changes to the economy will also be recommended.
The budget passed by the Israeli parliament last December already provided for cuts of nearly €2 billion, reflecting Israel's serious economic difficulties as a result of the 28-month Palestinian uprising and the slump in the high-tech industrial sector.
AFP
