ECONOMY

Israel's Ministry of Finance has received a radical proposal from former senior officials and businesspeople to tackle black capital and tax evasion, and narrow the fiscal deficit.

Discussions are underway on reform of the real estate tax, which has become a bureaucratic monster.

In July 2024, the average wage in Israel was NIS 13,683, up 6.7% from July 2023, the Central Bureau of Statistics reports.

The government has already approved raising VAT to 18% from January 1, 2025 as part of a special budget that was passed after the start of the war.

Finance Minister Bezalel Smotrich aims to narrow the deficit with a freeze on public sector pay, pensions and allowances, and higher income tax for the lowest tax bracket.

Discussions on the 2025 budget have resumed, but government sources question whether the minister of finance and the prime minister are in step.

How can an innovative Israeli company (Maytronics, SolarEdge) cope when a Chinese competitor produces something much cheaper and almost as good?

Intel is reportedly considering splitting into a production company and a development company. It employs thousands of people in Israel in both categories.

The Ministry of Finance petitioned the Labor Court for an injunction to end what it says was a blatantly political strike.

The general strike in support of the families of Israeli hostages in the Gaza Strip may continue for another day, unless the courts intervene.

Histadrut chairman Arnon Bar-David: I came to the conclusion after talking with the heads of the security forces that the deal is not progressing due to political considerations.

This cut will save NIS 12 million in expenses for Intel Israel, sources familiar with the matter have told "Globes."

Finance Minister Bezalel Smotrich has criticized Bank of Israel Governor Prof. Amir Yaron for not cutting the interest rate last week.

In its last published financials before completion of its privatization, Israel Post reported higher revenue but a 68% lower profit.

The program, which hopes to collect billions of shekels from Israelis' concealed wealth, including in cryptocurrencies, is being dealyed by a bureaucratic U-turn.

Prof. Amir Yaron tells "Globes" inflation will remain above the target range until the first quarter next year and urges the government to pass the 2025 budget.

The Bank of Israel is critical of government policy on the widening deficit and lack of a 2025 budget, and is also concerned about geopolitical uncertainty and inflationary pressures.

"All-out military conflict with Hezbollah or Iran could have significant credit consequences for Israeli debt issuers."

After the reform whereby Israel recognizes European standards for a wide range of products, the US seeks similar treatment, and even accuses Israel of ingratitude.

Minister of Finance Bezlalel Smotrich has not presented any major cuts to fund the extra budget but still insists the fiscal deficit will narrow to 6.6%.

Surveys by four US banks suggest government policy, or lack thereof, is denting confidence in the Israeli economy.

Finance Minister Bezalel Smotrich has told Yogev Gradus to implement his policies or resign. Former senior civil servants explain the rights and wrongs of such an ultimatum.

The Manufacturers Association fears that without a 2025 budget and a shortfall of workers, Israel's economic situation will only get worse.

The bank shares what it sees as the rating agencies' doubts about the government's willingness to bring the fiscal deficit under control.

In the wake of recent negative macroeconomic data, JPMorgan has cut Israel's GDP growth forecast in 2024 to just 1.4% from 1.6% in its previous forecast.

In an extraordinary letter to Prime Minister Benjamin Netanyahu, Governor of the Bank of Israel Amir Yaron says passing the 2025 budget on time is vital to Israel's fiscal credibility.

The huge shortages in the workforce has also been reflected over the past year in a rise in real wages, despite the economic slowdown.

The Weizmann Institute of Science in Rehovot has become the highest ranked Israeli university, leapfrogging the Hebrew University of Jerusalem.

The Central Bureau of Statistics reports negative GDP per capita growth of 0.4% in the second quarter, on an annualized basis.

The Consumer Price Index rose 0.6% in July, above expectations, as housing prices continue to rise.

Minister of Finance Bezalel Smotrich treats Israel's declining credit rating as a decree of fate, ignoring his government's failure to take necessary steps.