Bank of Israel’s Governor Warns New Elections Would Hurt Economy
Bank of Israel’s Governor Warns New Elections Would Hurt Economy
(Bloomberg) -- Bank of Israel Governor Amir Yaron called on the government to pass a budget as quickly as possible, and warned that a new round of elections would negatively impact the country’s economy as it grapples with an economic crisis brought on by the coronavirus pandemic.
Israel’s emergency coalition government is teetering on the brink of collapse amid a dispute between Prime Minister Benjamin Netanyahu and Defense Minister Benny Gantz over the duration of the country’s next budget. A disagreement between the coalition partners led to the cancellation of this week’s cabinet meeting, and the budget feud could soon drag Israel to the fourth national vote in less than two years.
In his statement, Yaron called for the government to set a clear budget outline without specifying what timespan it should cover, and added that reducing political uncertainty would bolster financial markets’ confidence in Israel and improve the ability of officials to navigate the crisis.
Yaron said that the Israeli economy is already dealing with significant difficulties, due to the coronavirus outbreak and its economic implications.
“There is great importance in stable management by the government and orderly decision making, which will minimize the uncertainty facing households and businesses,” Yaron said.
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