Bennett Faces Criticism Over Unrealistic Promises to Cut Cost of Living by 30%

Naftali Bennett, leader of the Yachdav party, has recently pledged to dismantle monopolies and reduce food prices in Israel by 30%, aiming to align local food costs with the OECD average and save families up to 8,000 shekels annually. His proposals include weakening dominant companies like Tnuva and Shufersal, challenging exclusive importers such as Shestovitz, Unilever, and Diplomat, opening the kosher certification market to competition, and supporting farmers through direct subsidies alongside phased tariff removals.

However, these promises have drawn sharp criticism for being unrealistic. Critics highlight that Bennett’s economic record, including his tenure as Minister of Economy from 2013 to 2015, shows limited achievements beyond renaming his ministry and partial reduction of Nesher Cement’s monopoly power without lowering cement prices. His critics also point out that many cost-of-living factors, such as Israel’s high VAT rate of 18% compared to Europe’s average of 8%, rising labor costs, generous social benefits, and municipal taxes, make such price cuts difficult.

Furthermore, Bennett’s coalition with Yair Lapid’s Yesh Atid, dubbed the "Rescue Union," is under pressure due to declining poll numbers, forcing Bennett to issue weekly promises to address the cost of living crisis. Observers argue that before tackling monopolies, the government should reduce wasteful spending and address structural economic issues. They also credit Finance Minister Avigdor Lieberman for implementing significant reforms like raising the retirement age.

Bennett’s critics urge him to adopt a more modest approach and acknowledge that the candidate with the largest number of Knesset seats, currently Gadi Eisenkot, should be the prime ministerial contender. Meanwhile, Bennett continues to focus on ambitious cost-of-living promises amid political uncertainty.