although not a member of the knesset, he was appointed minister of housing in march 1974 by golda meir. after meir resigned, he became minister of finance in yitzhak rabin's government, serving until 1977. in the 1977 elections he was voted into the knesset on the alignment's list, but lost his cabinet post as likud formed a right-wing government. his seat was taken by esther herlitz.