Yaron Zelekha's Economic Plan Faces Scrutiny Over Past Positions
Translated & summarized from Now 14 by baba
Professor Yaron Zelekha is campaigning on a platform to boost competition and lower prices in Israel by abolishing tariffs and tackling monopolies. However, his past professional opinions have been criticized as contradictory to his current proposals, having previously advised against measures that would increase market competition. His detailed economic plan, including VAT reduction and tax reforms, lacks comprehensive cost assessments and funding specifics, raising concerns about its feasibility and potential impact on state revenue.
The story in 6 lines · by baba
- Professor Yaron Zelekha proposes abolishing tariffs and tackling monopolies to lower prices in Israel.
- Zelekha's past economic opinions have been seen as supporting protectionist measures, contradicting his current platform.
- His economic plan includes reducing VAT to 12% and lowering income tax.
- Critics question the funding and feasibility of Zelekha's proposals, citing a lack of detailed cost estimates.
- Past professional work by Zelekha has been cited as evidence of him advising against market competition.
- Zelekha's proposed banking reforms and housing policies also face scrutiny over their practical implementation and costs.
Professor Yaron Zelekha, a candidate in the upcoming Knesset elections, is presenting a detailed economic platform aimed at increasing competition, abolishing import tariffs, and dismantling the power of monopolies and exclusive importers. His proposals include reducing VAT to 12% and lowering income tax. However, his past professional record shows instances where he provided economic opinions that supported limiting market openings and protecting established companies, contradicting his current public stance.
Zelekha's platform addresses issues like high living costs, concentrated markets, and import barriers, which are widely acknowledged problems in Israel. He proposes eliminating all tariffs and import quotas on food, breaking up dairy, egg, and honey production councils, and regulating exclusive importers in food, pharmaceuticals, and cosmetics as monopolies. He also advocates for fighting mergers and easing class-action lawsuits against large corporations.
Critics point to Zelekha's past work, including a 2010 opinion for Partner Communications against reducing interconnection fees, a move intended to increase competition in the mobile market, and a 2017 opinion for Har Tuv Cement supporting a levy on cheap foreign cement imports. While Zelekha argues these were complex economic arguments, they are seen by some as supporting protectionist measures, contrary to his current platform.
The plan's funding relies on eliminating tax breaks for large corporations, ending subsidies for monopolies, and streamlining government budgets. However, the platform lacks detailed cost estimates, prioritization, and timelines, raising questions about its feasibility and potential impact on state revenue and economic growth. Bank of Israel estimates suggest that canceling tax breaks for multinational corporations, while potentially raising NIS 6 billion annually, could also affect the economy's attractiveness for investment and lead to job losses.
In the banking sector, Zelekha proposes establishing a new state-backed bank and requiring banks to pay interest on current accounts. While aiming to increase competition, the plan does not detail the significant capital, licensing, and risk management required, nor the potential public cost if the new bank fails to become profitable. Similarly, his housing policy aims to reduce average housing prices but lacks specifics on land marketing, building permits, and infrastructure needed to support increased housing supply.
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