Liberman: Israel's economy has learned to live with COVID-19

The Israeli economy is recovering quickly because it has learned to live with the coronavirus, Finance Minister Avigdor Liberman said on Monday.

“A closure is not a good way to control the virus, and there is no reason to close schools because of it,” Liberman told a press conference ahead of submitting the budget to Knesset for final approvals.

“The green passport and purple ribbon systems are working well,” he said. “The best ways to manage the pandemic are with the vaccine and wearing masks. The connection between a lockdown and stemming the virus’s spread is not clear, but the connection to its economic damage is very clear. The coronavirus will be with us for a long time, probably many years, we can’t just keep locking down. Life is about managing risks.”

Liberman noted that Israel’s economic recovery is proceeding quickly. “The companies on the stock market are reporting excellent results, and credit card activity and tax revenues are growing very nicely,” he said. “We see that the economy has learned to live with coronavirus.

The finance minister called the new budget “the most social-oriented budget in Israel’s history,” with record budget additions for health, welfare, education, internal security and needy populations.

Among other things, the budget adds NIS 2 billion for the health budget, including the construction of two new hospitals, NIS 700 million. for welfare, NIS 1b. for education, NIS 1.8b. for the disabled, and an increase of some NIS 1,500 per month in benefits for Holocaust survivors. It is also the first budget to create new public housing options, with 1,700 new units being built for needy populations.

Regarding the controversial agricultural reforms, designed to increase competition and lower the prices of fruits, vegetables and eggs, Liberman insisted that changes are needed.

“The average age among farmers is 66, and the industry is not profitable. We can’t compete with third world countries on vegetable prices,” he said. “Our only chance to be competitive is to act like a startup nation and innovate. The first clause in the reform is for NIS 2b. to be invested in agricultural research and development.”

Liberman also suggested that farmers would do well to diversify their sources of income by using their farmland for other purposes, like creating solar energy fields, cellular antennas, or developing vacation rentals.

REGARDING THE government’s recent decision to approve a NIS 1.1 billion addition to the budget for pensions of IDF officers, Liberman said it was necessary to maintain the IDF’s competitive advantage. “Salaries in the army cannot compete with those in private companies, and we cannot offer benefits or hours that will equal those in the private market. The only candy we can offer to keep good people in the army is pensions.”

Liberman downplayed the threats of Labor and Meretz to vote against the budget’s accompanying arrangements bill due to its agricultural reforms and the raising of the retirement age for women.

“There is always drama up to the last minute when approving a budget. That’s how it works,” he said. “So far, the coalition is working well together, despite that everyone is unhappy about different things. What unites us is that we are about to pass the most social budget in the nation’s history, after three and a half years without any budget.”

“It is important to understand that the Economic Arrangements Law containing the controversial reforms is an integral part of the budget,” Liberman added, noting that the concept of such a law was introduced in 1985 as a way of passing unpopular bills into law quickly. “The budget is the plan for how these reforms will be implemented. You can’t approve the budget without approving the law.”

Liberman will be meeting with coalition leaders later Monday and the heads of the parties in the coalition on Tuesday.

“I am in touch with them all, and we will have a majority for both the budget and the arrangements bill,” he said. “There will be drama, declarations and ultimatums. The rules of the genre won’t change: They are built-in. I accept it on a philosophical level.”

Liberman said that after two and a half years with no budget, new arrangements and difficult decisions were needed.

“Not everyone will be happy,” he said. “It can’t be different in a coalition that is so diverse. But there is plenty of common ground. I believe in logic: What we propose is logical.”