Is the Finance minister a pupet? Israel's credit rating - at risk
The prime minister succeeds in turning the finance minister into an economic puppet. However, this puppet is dangerous because Israel Katz has the ability to move mountains but does not have the knowledge required to lead a proper economic policy. This is a professional contractor but neither an entrepreneur nor an economist who knows how to lead the Israeli economy to a safe haven. A worthy finance minister knows how to surround himself with top-notch professionals. This is so that they can arm him with economic weapons in difficult days for the Israeli economy. We are at a time when the deficit has grown to nine percent. Tax revenues have dropped dramatically and economic activity is very partial. The field of commerce and services was fatally damaged due to the high morbidity data in Israel and it does not seem that we will be privileged to see these fields return to activity soon. The industrial areas were damaged due to the social distance and the closure of Ben Gurion Airport. True cargo flights exist and also cargo ships sail around the world. With this the economic activity is conducted lazily. On such days restraint is required and the assistance given to the business owners must be genuine and one that will not result in the closure of businesses and factories. We learn that only about half of the aid decided on by the government reached the business owners and companies. In such a situation, the business companies are not interested in cooperating with the government and are in a hurry to take employees on unpaid leave. The motto is cost reduction. The Israeli government erred in not pursuing the policy of German Chancellor Angela Merkel. There they decided to support the companies by participating in the wage bill in such a way as to prevent mass layoffs. Dismissals or forced vacation expenses cause many workers to remain in the circle of the unemployed and not look for employment alternatives. A government that wants to rehabilitate the economy must take action on behalf of the unemployed and job seekers. The main answer is professional training and providing employment alternatives to laid off workers. So far this has not been done.
All these are overshadowed by the resignations of senior officials in the Ministry of Finance. They have substitutes I'm sure. There are certainly quite a few financial professionals. However, the dismissals indicate a concern among the professional clerks in the Ministry of Finance that the decisions made there are not on a medical or professional economic background. In such a state of affairs the concern is that the Prime Minister is managing the affairs of the state from within his own bank of personal interests. This will be checked by credit rating companies in the coming weeks. Israel is unfortunately closer than ever to lowering its flattering credit rating.