Finance Minister Yuval Steinitz on Sunday said that Israel must be wary when it comes to fiscal policy.

"If, god forbid, the Israeli economy spirals to a situation similar to that currently faced by Spain, there will be no organization or country that will funnel 100 billion Euros as assistance," Steinitz said at the start of a cabinet meeting.

Euro zone finance ministers agreed on Saturday to lend Spain up to 100 billion euros ($125 billion) to shore up its teetering banks.

Steinitz also said that he feels many Israeli politicians do not understand the need to remain within the parameters of the existing state budget. "I hear voices from the opposition and even from within the coalition saying that they don´t understand the importance of the budget," he said.

Israel is committed to protect its economy in light of the global financial crisis, Steinitz stated, adding that his goal was to reduce the deficit to a manageable level while under no circumstance breaking the budget. (© 1995-2011, The Jerusalem Post 06/10/12)