Israel's Next Finance Minister: Key Contenders Emerge
Translated & summarized from Globes by baba
Gadi Eisenkot's party is vying for the Finance Minister role, with Orit Farkash-Hacohen and Shaul Meridor as potential candidates. Other parties, including those led by Naftali Bennett and Avigdor Lieberman, also have individuals with economic expertise. The formation of the next government coalition is expected to be a key factor in determining economic policy, potentially overriding the specific minister's background. Moody's has observed limited differences in fiscal policy among the major parties.
The story in 5 lines · by baba
- Gadi Eisenkot's party is a contender for the Finance Minister position.
- Orit Farkash-Hacohen and Shaul Meridor are potential candidates from Eisenkot's party.
- Avigdor Lieberman, a former Finance Minister, is also a key figure in the running.
- The composition of the coalition government will heavily influence economic policy.
- Moody's notes little divergence in fiscal policy among major Israeli parties.
Following President Yitzhak Herzog's mandate to Gadi Eisenkot, chairman of the Yesh! party, to form a government, the race for the crucial Finance Minister portfolio has opened. The composition of the future coalition is expected to significantly influence economic policy, potentially more than the identity of the minister himself. Within Eisenkot's party, potential candidates include Orit Farkash-Hacohen, who previously served as Minister of Science and Technology and Minister of Tourism, and Shaul Meridor, a former Director of Budgets at the Ministry of Finance. Meridor, who resigned from the government in 2020 due to disagreements with then-Finance Minister Israel Katz, has been critical of political leadership's handling of economic matters. Despite his lower ranking on the party list, historical precedents suggest that position does not always dictate ministerial appointments.
Other parties are also presenting candidates with economic backgrounds. Naftali Bennett's party, "Bayit Yehudi," includes individuals like Bennett himself, who has held multiple ministerial roles, and former Finance Minister Yair Lapid. Lapid's tenure as Finance Minister saw efforts to reduce the debt-to-GDP ratio and government deficit, though it also included tax increases and cuts to child allowances. Another potential candidate is Keren Turner Eyal, former Director-General of the Ministries of Transportation and Finance, who was instrumental in shaping the party's economic platform alongside Liran Avishar Ben-Horin. The "Democrats" party has indicated its intention to seek portfolios such as Public Security, Education, Communications, and Justice.
Avigdor Lieberman, a former Finance Minister from the "Yisrael Beiteinu" party, is also a prominent figure. His tenure as Finance Minister was reportedly well-regarded by professional staff, and he championed a reform-heavy "Arrangements Law." Lieberman, like others mentioned, advocates for a capitalist economy and reduced funding for the Haredi sector. Moody's has noted that despite differing party affiliations, there is little divergence in fiscal and economic policy among the major parties. The article also touches upon the complexities of coalition building, referencing potential compromises on the draft law and the influence of parties like the Joint List and Ra'am. The current Finance Minister, Bezalel Smotrich, also comes from a right-wing economic school but has had to work with labor unions in a coalition where the Likud held decisive power, limiting his reform agenda.
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