"Haredim for Democracy": Demonstration against the legal revolution outside Gafni's home (Walla editorial!)
Finance Ministry Chief Economist Shira Greenberg warned on Tuesday against increasing pensions, arguing that the move could harm their integration into the labor market. She also warned against and warned against the collapse of talks on the legal revolution at the president's residence.
"Government decisions within the framework of the coalition agreements regarding an increase in child allowances and the implementation of the food assistance program without tests of maximizing household earning capacity are expected to lead to a negative impact on the integration of Haredi men into employment," she wrote in her forecast for Israel's economy over the next four years.
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"Harm to the integration of Haredi men into employment" (Photo: Reuven Castro)
She also spoke out against increasing the informal education budget, another clause in the coalition agreements. "The move is expected to lead to the diversion of students to institutions that teach core curriculum at lower volumes, or do not teach core curriculum at all, throughout all stages of study," she wrote. "This is expected to continue and deepen the decline in education levels relevant to the labor market of Haredi students." This is a phenomenon that the Ministry of Finance has already witnessed among young Haredim over the past decade.
Greenberg also criticized the legal revolution promoted by the government, not for the first time, claiming that the ongoing uncertainty and tension surrounding the reform affect the Israeli economy and forecasts. She also warned against the failure of dialogue at the president's residence and the unilateral advancement of any laws. Such a "worsening scenario," she said, would make the outlook even more negative.
The Chief Economist at the Ministry of Finance (Photo: Ministry of Finance Spokesperson's Office)
In a forecast published by the chief economist regarding the fruits of normalization: "In recent years, a number of new agreements have been signed with several Gulf states and with Morocco, and the Israeli economy has begun to enjoy their fruits. Additional normalization agreements with countries that do not have official relations with Israel can open new markets for Israeli exports, encourage tourism, increase investment and improve market sentiment."
Finance Ministry officials have already warned against the current distribution of coalition funds. The head of the Finance Ministry's Budget Department, Yogev Gradus, issued a survey in which he warned that it could lead to an increase in taxes: "Even before the implementation of the government decision and its expected negative effects on the economy, without a change in the employment rate among Haredi men, the cumulative loss of GDP by 2060 is expected to reach NIS 6,708 billion. In addition, in 2065 direct taxes will need to be raised by 16 percent in order to maintain the same level of services that the state provides without increasing the deficit."
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- Haredim
- Allowances
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