Interior Minister Eli Yishai said at the cabinet meeting Sunday that the increase in water prices may "bring an end to the government."
Yishai said "we cannot accept an increase of hundreds of percents in prices. The water must be subsidized."
These comments came after earlier Sunday, hours before a nationwide local authorities strike was set to paralyze the country, Prime Minister Binyamin Netanyahu, Finance Ministesr Yuval Steinitz and Yishai succeeded in negotiating a deal with the heads of local authorities.
The government agreed to grant the local authorities with NIS 2.75 million in 2011, and an NIS 2.8 million in 2012. In addition, a committee will provide recommendations within 45 days on how to coordinate between water companies and local authorities.