Former Smotrich Aide Slams Israel's 'Monopoly-Run' Economy
Translated & summarized from Walla by baba
Former Finance Ministry Director General Shmuel Slavine resigned from his cost-of-living role, criticizing Prime Minister Netanyahu's failure to address the issue. Slavine stated Israel's economy is run by monopolies, not a free market, and that politicians lack the power to enact change. He noted Israel's strong economic growth but a significant failure in managing the high cost of living.
The story in 5 lines · by baba
- Former Finance Ministry official Shmuel Slavine resigned, citing failure to address Israel's high cost of living.
- Slavine stated Israel's economy is run by monopolies, not a free market, lacking political will for reform.
- He criticized Prime Minister Netanyahu for failing to fulfill election promises on the cost of living.
- Despite strong economic growth, Slavine identified the high cost of living as a major national failure.
- Slavine credited Economy Minister Nir Barkat for pushing trade liberalization initiatives.
Shmuel Slavine, former Director General of the Ministry of Finance and ex-project manager for Bezalel Smotrich on cost-of-living issues, has resigned from his role, citing an inability to advance any meaningful changes. Slavine, who now heads the real estate company Sela Capital, stated that the issue of the high cost of living in Israel is far more serious than minor government initiatives like reducing fuel excise taxes, which he called "nonsense." He criticized Prime Minister Benjamin Netanyahu for failing to address the cost of living, a promise made before the previous elections.
Slavine highlighted Israel's strong economic performance in areas like growth, inflation, foreign currency reserves, and employment, noting that the exchange rate has remained surprisingly stable around 3 shekels to the dollar, even during the war. However, he pointed to the high cost of living as a significant failure, arguing that the Minister of Finance should focus on major issues rather than minor ones.
He revealed that Smotrich had proposed he lead a committee to tackle the cost of living before October 7th. After the war began, Slavine concluded that issues like the dairy monopoly were untouchable due to the hardships faced by farmers in the Gaza border region. He also found a lack of willingness to engage on other fronts.
Slavine asserted that Israel does not have a true free market but is instead run by monopolies that could be dismantled through aggressive legislation. He claimed that the Minister of Finance lacked the political power to address this, as powerful private entities with strong legal and accounting support, and even the courts, provide them backing. Regarding mortgages, he noted that banks profit from interest rates, projecting significant earnings and returns on equity for the banking system.
He also described encountering indifference from public sector officials, suggesting they either lacked the desire or the knowledge to tackle these issues. Slavine credited Minister of Economy Nir Barkat for pushing an initiative to align Israeli trade terms with Europe, despite opposition from professional staff.
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