Israeli Parties Outline Economic Platforms Ahead of Elections

As Israel approaches elections, various political parties have responded to Globes' economic questionnaire, outlining their proposed solutions to the rising cost of living and other economic challenges. While most parties provided detailed answers, Likud, Shas, United Torah Judaism, and Ra'am did not respond to the 18 economic questions posed.

The "Yashar" party advocates for opening imports as a primary tool to lower prices, proposing to cancel unjustified unique standards and expand parallel imports. They also plan to reform supply chains, ease entry for importers, and establish free trade agreements. For agriculture, Yashar suggests gradual tariff reductions coordinated with the sector, alongside direct support for farmers and investment to recognize agriculture as a strategic industry. They oppose price controls, viewing them as a symptom rather than a cure, and prefer import liberalization, breaking up monopolies, and removing barriers for new market entrants. Price controls would only be a last resort for essential goods.

Yashar also opposes general tax increases, proposing instead to reallocate the existing budget by canceling sectoral coalition funds, closing unnecessary ministries, and adjusting benefits based on earning capacity. They also plan to combat the black market through digital reporting and AI. The party favors taxes on activities with negative environmental impacts, like single-use items and sweetened beverages, over VAT increases. They are against immediate cuts to the defense budget, acknowledging the need to strengthen military capabilities post-October 7th, but aim for a gradual reduction of its share of the GDP over time. Yashar supports a national service law for all to share the burden and reduce reserve duty expenses.

Regarding the national debt, Yashar aims for a debt-to-GDP ratio of around 60%, achieved gradually, while increasing civilian spending through budget reallocations. They plan to strengthen exporters through improved investment conditions and efficient public services, not artificial currency protection. In high-tech, Yashar will focus on judicial independence, intellectual property protection, and supporting local computing centers. They are cautious about a specific reform in the savings market, emphasizing the need for in-depth examination and consumer choice based on accessible information rather than tax benefits. The party also plans to increase transparency in management fees, yields, and risks for pension and insurance funds, facilitating digital transfers and oversight.

Yashar opposes raising taxes on real estate investors, believing the solution to the housing crisis lies in increasing supply through digital licensing, incentives for contractors, and urban renewal. They are against subsidized housing lotteries, advocating for increased supply and prioritizing those who serve and contribute. The party also opposes a one-time increase in municipal property tax (Arnona) for residences, proposing a reform to incentivize municipalities to promote housing. In transportation, Yashar prioritizes public transit, expanding dedicated lanes, and decentralizing regional transport management. They support congestion charges as a demand management tool, provided revenues are reinvested in public transport and alternatives to private vehicles. The party also backs extending high-speed rail to Eilat and Kiryat Shmona to connect the periphery and boost employment.