Yaron Zelekha Pledges Drastic Price Reductions Within Three Months

Professor Yaron Zelekha, chairman of the Economic Party and a candidate in the upcoming elections, has outlined a five-step plan aimed at rapidly reducing the cost of living in Israel. In a special interview, Zelekha stated that on his first day in office as Finance Minister, he would implement measures to significantly combat high prices, with further actions to follow weekly. He expressed confidence that "within three months, we will no longer recognize the country" due to these changes.

The initial steps include abolishing import duties and quotas to allow cheaper goods from Europe, thereby lowering prices. Zelekha also intends to prevent powerful domestic monopolies, such as Coca-Cola, Tnuva, and Strauss, from controlling imports and stifling competition. He plans to dismantle the power of exclusive and cross-import agents who allegedly form "licensed local cartels." Finally, Zelekha aims to place the Competition Authority directly under his supervision to ensure rigorous enforcement of competition laws and price reductions.

Zelekha contrasted his approach with that of former Prime Minister Naftali Bennett, criticizing Bennett's actions while in office. Zelekha, who served as Accountant General from 2003-2007, claimed that during his tenure, housing prices consistently decreased, whereas under Bennett's leadership, they rose significantly. He also pointed to increases in food and car prices, as well as bank profits, during Bennett's time in government.

He identified import barriers as the primary driver of high supermarket prices, noting that goods in Europe, just a short flight away, are half the price. Zelekha asserted that his policies would dismantle these barriers, leading to substantial price drops, reversing the current situation where Israeli prices are 40% higher than in Europe and the US.

Addressing the housing crisis, Zelekha corrected the notion that prices have risen for the past 20 years, stating they fell during his five-year term at the Treasury and only began to climb after his departure. He attributed subsequent price increases to a lack of investment opportunities, arguing that excessive profits were being siphoned off by contractors, monopolies, and large corporations instead of fostering economic growth.

Furthermore, Zelekha reiterated his strong opposition to tax breaks for large corporations, as previously highlighted in the "Plate of Silver" series. He plans to abolish these benefits, redirecting the funds to lower taxes for small businesses, consumers, and employees. He also warned that Israeli citizens are shouldering a significant and growing burden of private debt, including mortgages and credit card debt, a fact he believes politicians are hesitant to disclose.