Israel Economic Protests: New panel to address Israelis’ economic burden


Source: JTA, 7-31-11

Prime Minister Benjamin Netanyahu said he will form a ministerial committee to address the country’s economic challenges.

In the wake of massive protests across Israel, Netanyahu on Sunday said he would appoint a special team of ministers and experts to listen to representatives of the protesters and to submit a plan “to alleviate Israelis’ economic burden.”

“We are all aware of the genuine hardship of the cost of living in Israel,” Netanyahu said Sunday at the start of the regular weekly Cabinet meeting. “This affects many areas.  Some of the claims that are being heard are justified and some are not. Indeed, we must deal with the genuine distress, seriously and responsibly. This, without a doubt, compels us to change our list of priorities.”

The prime minister also said that “We must avoid irresponsible, hasty and populist steps that are liable to cause the country to deteriorate into the situation of certain European countries, which are on the verge of bankruptcy and large-scale unemployment.”

The announcement came hours after the resignation of the Finance Ministry’s director general, Haim Shani, who cited a “fundamental difference of opinion” with Finance Minister Yuval Steinitz. It is rumored that Steinitz could lose his job over the protests that are sweeping the country.

On Saturday night, more than 100,000 Israelis protested against the high cost of living in cities across Israel, with the largest demonstrations in Tel Aviv, Jerusalem, Beersheba and Haifa. It was the largest turnout for the populist protests since they began about two weeks ago.

Meanwhile, activists reportedly are planning a general strike for Monday.

Israel Political Brief August 8, 2011: Standard & Poor’s downgrades Israel’s U.S. loan guarantees


Source: JTA, 8-8-11

Standard & Poor’s said ratings for the loan guarantees Israel obtains from the United States dropped commensurately with its downgrading of the U.S. credit rating.

The rating agency, one of three major credit raters, said Monday that the $6 billion Israel receives in guarantees dropped from its highest rating of AAA to AA+, as had the overall U.S. credit rating in the wake of 11th-hour negotiations between Congress and the White House over the terms of raising the U.S. debt ceiling, The Associated Press reported.

Unaffected was S&P’s overall rating for Israel, which remained at A/A-1, a level reporting a “strong” capacity to meet financial commitments.

Another major credit rater, Moody’s, had said before the debt ceiling matter was resolved that Israel might see its loan guarantees downgraded in the event that the United States was downgraded. Moody’s, however, did not downgrade its U.S. rating.

On Sunday, the Tel Aviv Stock Market experienced its largest one-day loss in nearly three years in reaction to the downgrade of the U.S. credit rating.

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