Israeli Small Business Leader Criticizes Finance Minister Smotrich as Economic Disconnect Grows

Roee Cohen, president of the Israeli self-employed organization Laav, sharply criticized Finance Minister Bezalel Smotrich in a recent podcast, calling him a "failed finance minister" with no real connection to the economy or business sector. Cohen accused the minister of remaining silent amid increasing costs, bureaucracy, and regulation imposed on small businesses, which he says are viewed merely as a revenue source for the state rather than partners in economic growth.

Cohen detailed several recent regulatory measures harming small businesses, including changes to VAT payments that will disrupt cash flow for hundreds of thousands of self-employed individuals, new recording laws with unsuitable regulations for small enterprises, and stricter kosher certification rules that will reduce competition and raise costs for restaurants, mini-markets, event halls, and hotels, potentially passing expenses onto consumers.

He also called on the Bank of Israel governor to reduce interest rates by half a percent in the upcoming week to stimulate economic activity, proposing a clear plan to lower rates to 2.5% by the end of 2026 to provide the economy with much-needed relief.

Looking ahead to the elections, Cohen intends to leverage Laav's political influence to shift party agendas toward economic issues. Having previously run for the Knesset with the Kulanu party, he emphasized the difficulty of establishing an independent political force amid election debates dominated by Netanyahu's leadership and coalition questions. Cohen vowed to hold politicians accountable for their promises to the self-employed, stressing that the upcoming elections must address the economy, cost of living, livelihoods, and the needs of small businesses that sustain the country.