Israeli Election Campaigns Largely Ignore Economic Platforms

With two weeks remaining until the 26th Knesset elections, Israeli political parties are failing to present clear economic agendas for their potential governance. A significant majority of current coalition parties, including the ruling Likud, have not published economic platforms, a trend the article describes as the "new normal." This comes despite a high national deficit, exceeding 4% of GDP, following years of astronomical deficits. Instead of discussing economic priorities and budgeting, the political discourse is focused on other issues.

The Likud, led by Prime Minister Benjamin Netanyahu, has made a habit of running without an economic platform, a strategy also employed in 2019. Other parties, including Shas, United Torah Judaism, Otzma Yehudit, and even Religious Zionism, headed by Finance Minister Bezalel Smotrich, have also neglected to release such documents. Smotrich's omission is particularly notable, as he managed the state's finances for four years but has not outlined his economic policy for voters.

While opposition parties offer more general directions, their proposals are not always precise. Yisrael Beiteinu has presented the most detailed platform, with some promises costed, such as NIS 3 billion for police reinforcement and NIS 1 billion for artificial intelligence. However, it lacks a total cost estimate and funding sources. Yisrael Beiteinu also proposes adding NIS 25 billion annually to the defense budget. "Yisrael Beiteinu" by Gadi Eisenkot promises income tax reductions funded by combating the black market, a source many finance ministers have pledged to tap without success.

Parties like "Yachad" (United) by Naftali Bennett and Yair Lapid have presented thematic plans for decentralizing the food market and increasing long-term care benefits, but without specifying funding. The Democrats have offered a general platform with no clear financial details. Promises to cut government ministries, such as those by Yisrael Beiteinu and "Yisrael" (Israel) by Eisenkot, amount to less than 0.14% of the state budget, and many of these ministries predate the current government. The explicit cancellation of coalition funds, promised only by Yisrael Beiteinu, is worth approximately NIS 5 billion annually, but some of this funding has already been integrated into the budget base.

The article suggests several reasons for this lack of economic focus: the historical prioritization of security over economics, especially since October 7th; the "disguising" of economic debates within other issues like ultra-Orthodox conscription; the absence of a felt economic crisis among the public due to a recovering economy, low unemployment, and stable inflation; and the structural shift of parties becoming mere vehicles for their leaders. Additionally, a global populist trend, where political discourse focuses on moral divides rather than policy specifics, is cited. The author concludes that the next government will face a significant fiscal challenge with a high deficit and ongoing defense spending, a reality that voters will eventually have to confront.