Economic Party Aims to Be First of Its Kind in Knesset
Translated & summarized from Bizportal by baba
Professor Yaron Zelicha, chairman of the Economic Party, aims to be the first purely economic party to enter Israel's Knesset, potentially by uniting with the Reservists Party. Zelicha criticizes Israel's economic decline, attributing it to monopolies and lack of competition, which he believes have driven up prices for essentials. He proposes sweeping reforms to dismantle monopolies, lower taxes, and boost competition, stating he would only join a future government as Minister of Finance.
The story in 5 lines · by baba
- Yaron Zelicha's Economic Party aims to be the first purely economic party to enter the Knesset.
- Zelicha criticizes Israel's economic decline, blaming monopolies and lack of competition for high prices.
- He proposes dismantling monopolies and lowering taxes as key economic reforms.
- Zelicha served as Accountant General and director of economic affairs in the Prime Minister's Office.
- He insists on being appointed Minister of Finance as a condition for joining a future government.
Professor Yaron Zelicha, chairman of the Economic Party, believes his party could be the first purely economic party to enter the Knesset, potentially by joining forces with Yoaz Hendel's Reservists Party. Zelicha, a 56-year-old economist with prior experience as director of the economic department in the Prime Minister's Office and as Accountant General in the Ministry of Finance, asserts that Israel has suffered economic and social decline for two decades, exacerbated by monopolies and a lack of competition.
Zelicha claims his tenure at the Ministry of Finance from 2003 to 2007 was a "golden age" for Israel's economy, during which he implemented policies that led to 7%-8% growth, reduced taxes significantly, and lowered housing prices. He argues that since then, Israel has become a "paradise for monopolies" and a "hell for young couples," with excessively high prices for housing, cars, food, and essential services compared to Western countries. He attributes this to the dominance of monopolies and exclusive importers, who he believes are favored by the establishment.
To combat this, Zelicha proposes a sweeping reform to dismantle monopolies, transfer the Competition Authority to the Ministry of Finance, and reduce taxes, including VAT and corporate tax, to fund health and education. He specifically targets exclusive importers, calling them "cartels by license," and aims to abolish import duties and quotas on food to allow smaller importers to compete. He also seeks to reinstate regulations against excessive pricing by monopolies.
Zelicha is confident his reforms would not only lower prices by an estimated 250 billion shekels but also boost employment and business activity, potentially leading to a weakening of the shekel. He is open to joining a future government, but only if he is appointed Minister of Finance, stating he is "black and white" on this condition. The success of his party in crossing the electoral threshold and his ability to implement his ambitious economic agenda remain to be seen.
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