Eisenkot's Platform: Economic Plan or Unfunded Shopping List?

The Yishar party, led by Gadi Eisenkot, has unveiled a detailed economic platform for the upcoming 26th Knesset elections, surpassing many of its rivals in scope. The plan includes initiatives for the first 100 days in office, policy papers, and promises across various sectors, from taxes and daycare to housing, transportation, agriculture, reservists, and high-tech. However, the extensive details raise questions about the overall cost and funding sources.

The party's platform advocates for a free market with a state that encourages work and service. Key proposals include reducing income tax for workers and service members, opening imports to European and American standards, and combating the black market. Concurrently, it suggests reinstating taxes on sweetened beverages and single-use items, previously introduced by former Finance Minister Avigdor Lieberman. Critics point out that income tax cuts are a significant, ongoing expense, while taxes on beverages and disposables are limited and may decrease if public behavior changes.

Yishar proposes tying economic benefits, such as daycare subsidies, to socioeconomic status, earning potential, and military or national service. The party's message is to provide more support to those who work, serve, and contribute, and less to those who choose not to integrate. While this could encourage employment, particularly for young parents, conditioning basic rights on service or income potential might exclude individuals facing genuine difficulties in employment or integration.

A major commitment from Yishar is a NIS 20 billion investment over three years in the reservist system, their families, and employers, amounting to approximately NIS 6.7 billion annually. This is in addition to other proposed programs. While the need to support reservists is clear, especially after two years of war, this represents a substantial financial obligation, particularly given the current high deficit and expanding defense budget. The party suggests future growth, including integrating the Haredi community into service and employment, as a funding source, but this does not provide immediate funds for the NIS 20 billion.

Regarding the cost of living, Yishar favors adopting European and American standards, opening the market to parallel imports, increasing transparency in the profits of major food and pharmacy companies, and facilitating access for smaller players in distribution and storage. In agriculture, it proposes gradual tariff reductions with direct compensation for farmers instead of high consumer prices. The party also aims to abolish the current kashrut law and reinstate a reform promoting competition.

In housing, Yishar's plan focuses on the number of occupied apartments rather than marketing or approvals. It suggests streamlining the planning-to-construction process, empowering local authorities, enabling digital self-licensing, and penalizing developers for delays. The party does not propose rent control or price freezes, with former budget chief Shaul Meridor arguing that increasing housing supply is the key to lower rents. Meridor also proposed changing brokerage rules to have landlords pay agent fees when they hire them, a suggestion that drew criticism for potentially harming the free market.