Military service for all, Finance Ministry: Zelekha unveils economic plan, slams Netanyahu

Professor Yaron Zelekha, chairman of the Reservists and Economic Party, unveiled his economic platform at a press conference on Thursday ahead of the upcoming elections, outlining a series of reforms aimed at lowering the cost of living, cutting taxes, and increasing competition in the Israeli economy. During the press conference, Zelekha sharply criticized Prime Minister Benjamin Netanyahu and responded to Netanyahu’s attacks directed at him. "Bibi is attacking me because he knows that when I become finance minister, the public will realize that life in Israel could have been cheaper for the past 20 years," Zelekha said. He added, "Bibi sold the economy to monopolies and extortionists. I'm going to take it back. The choice isn't 'Bibi or not Bibi.' It's between the alliance of wealth and power and your children." As part of his economic plan, Zelekha outlined measures he pledged to implement upon becoming finance minister, including abolishing all import tariffs and quotas, dismantling the production boards in the dairy, honey, and egg industries, and prohibiting exclusive agreements between international manufacturers and local importers. He also proposed transferring the Israel Competition Authority to the Finance Ministry and reinstating legislation prohibiting monopolies from charging excessive prices. According to Zelekha, the previous law was effectively stripped of its substance following an April 2023 Supreme Court ruling. On taxation, Zelekha pledged to repeal the law on undistributed corporate profits and the surtax on high incomes. He also proposed gradually reducing VAT by one percentage point annually until it reaches 12%, while progressively lowering income tax rates to a maximum of 40%. In infrastructure, Zelekha presented a plan to shift major projects to a model under which private companies would be responsible for construction and operation. The projects include a new airport at Hatzor, high-speed rail connections to Kiryat Shmona and Eilat, two new hospitals in northern and southern Israel, and the Metro project. He also proposed establishing a new bank and implementing the automotive industry reform he first introduced in 2012. Regarding the state budget, Zelekha proposed freezing the budgetary pensions of existing government employees, eliminating coalition discretionary funds, significantly reducing benefits for draft evaders, and reviewing government contracts awarded without competitive tenders. Zelekha challenged Finance Minister Bezalel Smotrich and Naftali Bennett to an economic debate, arguing that politicians who rely on funding from wealthy business magnates cannot lead a genuine fight against the rising cost of living. Turning to the political landscape, Zelekha made clear that his party would not join just any coalition. "We will only enter a Zionist government that introduces universal military service and places the Finance Ministry in my hands. We will not provide the 61st seat for Netanyahu's government of draft evasion, nor will we provide the 61st seat for an Eisenkot government with the Arab parties," he declared. Concluding his remarks, Zelekha said, "The political bloc mentality is costing you 30,000 shekels a year. We will put an end to it. Today, I came to present you with the way forward. My first day as finance minister will go down in the history of the State of Israel as the day of reckoning for the tycoons, the banks, the monopolies, and the corrupt."