Economy Minister Nir Barkat Faces Criticism Over Handling of Food Prices

Israeli Economy Minister Nir Barkat is facing significant criticism regarding his approach to tackling the rising cost of food, with accusations that his actions have fallen short of initial promises. What began as a declared "uncompromising" battle against food companies and pledges to expand price controls has allegedly devolved into promoting major monopolies and encouraging their discounted sales at the expense of smaller suppliers. This is reportedly being facilitated through a consumer tax-funded campaign for Barkat's initiative, "Israel's Basket."

Food companies have reportedly shown disregard for Barkat's efforts, refusing to postpone or cancel price increases. In response, Barkat publicly criticized Osem, a food company, by photographing himself with its products adorned with black stickers, labeling it a "regulatory shaming." Strauss, another company, was also targeted and placed on a "blacklist" for not complying with his requests to cancel price hikes.

Behind the scenes, the then-Director General of the Ministry, Amnon Merhav, allegedly pressured the head of the Antitrust Authority, Michal Cohen, to demand data from the Central Bottling Company, despite no apparent wrongdoing. Cohen's refusal to comply reportedly spurred Barkat's main effort: a failed attempt to dismiss Cohen.

Following a period marked by sharp food price increases during his tenure, Barkat launched the "Israel's Basket" project. This initiative involved a tender for retailers to offer a basket of 100 discounted products, predominantly high in sugar, salt, and fat. Carrefour, the sole bidder and winner of the tender, anticipated a sales surge but instead experienced a decline.

Despite the perceived failure in addressing the cost of living, Barkat has achieved one notable success: approval to bring in thousands of foreign workers. This influx is reportedly enabling major retailers to improve their services.