In a letter written by the Forum of Economists to the Prime Minister and the Minister of Finance, following the severe blow inflicted on the State of Israel, it was written that the State of Israel is committed to a fundamental change in the national priorities and a massive diversion of budgets in order to deal with the damage caused by the war, aid to the casualties, and rehabilitate the economy.
In this context, the forum called on the Prime Minister and the Minister of Finance to come to their senses. The current conduct harms the Israeli economy, undermines citizens' confidence in the public system, and undermines Israel's ability to recover from the situation it finds itself in.
We entered the war in a good economic situation on many levels, including the debt-to-GDP ratio; full employment; moderated inflation; The Bank of Israel interest rate at a restraining level and more.
Netanyahu and Smotrich in a socio-economic cabinet, photo: Haim Tzach / GPO
On the other hand, we entered internally damaged as a result of the nine-month processes, which on the eve of the fighting we experienced processes of legal change with their economic, local and international ramifications. In this context, we were warned by the rating companies regarding the importance of governance and the importance of making changes with broad consensus while maintaining the independence of the institutions.
Since the beginning of the fighting, we have witnessed an increase in Israel's risk premium (the increase in CDS); The two rating companies put Israel's rating on a negative horizon that raises the potential for a downgrade, as a derivative of the development of warfare and its effects, as well as an emphasis on government and treasury policy to deal with the derivative economic aspects.
Since the beginning of the war, some 350,<> civilians have been drafted into the reserves. This leads to economic damage to the GDP aspect. there is direct damage and economic damage as a result of the fighting; Property damage and, of course, the cost of warfare itself.
Our economic situation enables an increase in the budget deficit
There is an immediate need for assistance to those affected in terms of the short term, as well as assistance for rehabilitation and return to routine in terms of the medium to long term. This immediate assistance should come by way of government assistance, whether by re-prioritizing the existing budget items, freezing and diverting coalition funds, and/or creating a designated budget box, in the appropriate amount, after examining the existing budgetary sources.
The immediate assistance should also be carried out sensibly and differentially in accordance with the extent of the injury, the robustness and resilience of the various factors; If the observation is at the level of individuals, the types and sizes of businesses and the characteristics of the industries of the economy according to their level of vulnerability.
Our economic situation makes it possible to increase the budget deficit and, if necessary, also significantly. Time has value and must be taken into account. Economic value. Social value. Value of public trust in the country.
House damaged in massacre at Kibbutz Nir Oz, photo: Liron Moldovan
It is true that both the Ministry of Finance and the various government ministries will consider overall economic and state considerations rather than sectoral ones, understand the emergency in which we find ourselves, look at a holistic level and set an example of responsibility, leadership and governance.
Instead, we are witness to the remarks made by the Attorney General of the Treasury, Adv. Assi Messing, according to which the task force established in his office by Minister Smotrich to manage the handling of war matters raises legal difficulties and will not be able to act, the response of those close to the Minister of Finance that they do not have time to read 16 pages of detached text.
Governance we have already mentioned before. The overriding of the gatekeepers and the lack of reference to the professional echelon have already been mentioned in the past. Common denominator and consistent and clear behavior. I wonder what they do in their spare time when they don't read disconnected text. Are we witnessing significant plans? Did the victims receive immediate assistance that helps? Did they find time to meet the war victims in body, soul and business? I wonder.
Continuing the ego wars
In my estimation and understanding, ego wars, defiance of others, expectations of others, factionalism and very little of themselves continue. Isn't it cynical not to address the position of a professional body and read a few pages when dealing with the challenge of rehabilitating, rehabilitating and marching the state years ahead on the existing challenges? Isn't it right and acceptable to act in accordance with the law and acceptable even in times of emergency? To what extent is it possible to be cynical, narrow-minded, and focused on goals that are not the proper goals?
Now, we also get an example of the "anatomy" of the Minister of Finance when he said in a discussion on the opinion of the legal advisor of his ministry – "I am interested in the tip of the popik." It is clear to all that this is not an appropriate response. Clearly, this response does not constitute a professional challenge to the position of the Attorney General.
This statement does not constitute a personal example of a leader and leader. This statement is shameful and outrageous.
The Minister of Finance should find a way to apologize to the legal advisor in his ministry, to the employees of his ministry, to his constituents, and to the citizens of the State of Israel.
Gatekeepers – continue on your professional path. The good of the state and its citizens is before your eyes and it is good that you are where you are for the benefit of all of us.
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