Netanyahu Praises Argentina's Milei for Economic Reforms, Contrasts with Own Policies
Prime Minister Benjamin Netanyahu lauded Argentine President Javier Milei at the UN General Assembly in New York, calling his economic reforms a "masterpiece" and praising his ability to overcome political opposition. Netanyahu commended Milei for achieving a "transformation" in Argentina's economy, highlighting the courage required to implement difficult changes and pay a political price for long-term economic benefits.
However, the article contrasts Netanyahu's praise with his own government's actions, suggesting that the current Prime Minister has done the opposite of what he commends. It points to the 2023-2024 budget, which the Bank of Israel noted lacked significant reforms for sustainable growth. The report details reduced infrastructure development budgets, stalled regulatory reforms, and cuts to incentives for core studies and employment among the Haredi (ultra-Orthodox) community.
The piece questions the lack of major structural reforms, productivity improvements, and changes in Haredi education, especially given the demographic challenges and their macroeconomic implications. It also criticizes the expansion of government ministries under Netanyahu, contrasting it with Milei's focus on a lean and efficient government, and notes that the International Monetary Fund recommends Israel reduce administrative spending.
The article further discusses Israel's fiscal situation, exacerbated by the war since October 7th, which has increased defense spending and made political spending more costly. While acknowledging a painful fiscal adjustment in 2025 that reduced the deficit, it argues that the government missed an opportunity to rebuild fiscal buffers. The report draws a parallel to the post-COVID period, when the previous government used economic recovery to reduce national debt.
Finally, the author criticizes Netanyahu's current approach, suggesting he prioritizes avoiding political costs over economic ones, unlike Milei. The article concludes by implying that Netanyahu, while praising Milei, may be reminiscing about his own past tenure as Finance Minister in 2003, when he implemented more significant economic reforms.
