Likud Party's Economic Platform Faces Scrutiny Amidst Cost of Living Concerns
Translated & summarized from Now 14 by baba
The Likud party's election campaign has largely ignored the rising cost of living, focusing on security instead. Internally, the party faces a conflict between free-market ideals and protecting established industries, leading to watered-down reforms and debates over competition. While past Likud governments achieved price reductions through reforms like "Open Skies" and cellular market liberalization, current proposals on housing and transportation lack clear funding and broad impact. The party's economic platform is a blend of ideology and catering to specific interest groups, raising questions about which promises will benefit the general public.
The story in 6 lines · by baba
- The Likud party's election campaign has largely ignored the rising cost of living, focusing on security instead.
- Internal party conflicts exist between free-market advocates and those protecting domestic industries.
- Reforms aimed at lowering prices, like import liberalization and dairy sector changes, have been scaled back or met with opposition.
- Past Likud governments successfully lowered prices through reforms in air travel and mobile services.
- Current proposals on housing and transportation lack clear funding and broad public benefit.
- The party's economic platform mixes ideology with the interests of powerful groups.
The Likud party's current election campaign has largely sidelined the issue of the rising cost of living, focusing instead on security threats and political maneuvering. While Prime Minister Benjamin Netanyahu made prominent economic promises in the 2022 election, such as free education for children up to age three, the current campaign lacks a central economic message. This shift leaves voters without a clear plan for how to manage financially, despite the party's historical association with free-market principles.
Internally, Likud grapples with a tension between its stated ideology of free markets and its actual policies, which often involve government intervention and subsidies. While figures like Netanyahu and Minister of Economy Nir Barkat advocate for opening markets to imports and reducing barriers, other party members and ministers prioritize protecting domestic industries, farmers, and organized labor groups. This internal conflict is evident in various policy debates, such as Barkat's import reform and opposition to a dairy sector reform.
Barkat's "What's Good for Europe is Good for Israel" reform, aimed at easing import regulations, was significantly scaled back during legislation. Similarly, his "Israel's Cheap Basket" initiative, intended to encourage supermarket competition on a limited set of products, was criticized for being a temporary, limited measure that ended with Carrefour's withdrawal. In the dairy sector, MK Sasson Guetta has strongly opposed reforms aimed at increasing competition and imports, arguing for the protection of local farmers and food security.
Despite these challenges, the article points to past successes under Likud governments, such as the 2013 "Open Skies" agreement that lowered airfare prices and Moshe Kahlon's (then a Likud minister) 2011 cellular reform, which drastically reduced mobile service costs. These examples suggest that opening markets to genuine competition can lead to lower prices for consumers.
In housing, Likud promises to lower land prices and offer preferences to reservists, though the cost and impact on the broader market remain unclear. Regarding transportation, Minister Miri Regev has proposed free public transport, a plan lacking a detailed budget and timeline, and is also pushing for legislation to allow ride-sharing services like Uber, facing opposition from the taxi industry. The party's economic platform appears to be a mix of ideological commitments and responses to the interests of various powerful groups, leaving questions about the broad accessibility and funding of its proposed benefits.
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