Former prime minister Naftali Bennett, chairman of the Together Party, unveiled a plan on Tuesday to rehabilitate Israel’s economy and address the country’s high cost of living.
The plan, titled “A New Agreement on the Cost of Living,” proposes a series of regulatory measures aimed at lowering prices. At the center of the proposal is “declaring an all-out war on monopolies and centers of economic concentration responsible for high prices.”
Israel is among the most expensive countries in the developed world. It ranks fifth among OECD countries in the cost-of-living index for food products, with prices more than 33% above the OECD average.
Reducing food prices to the OECD average would save an Israeli family about NIS 8,000 a year, according to the Together Party. The party said that goal is at the heart of its “New Agreement on the Cost of Living.”
One of the plan’s main proposals would require monopolies to divest brands over which they have monopolistic control. The party also seeks to dismantle monopolies throughout the supply chain.
Under the proposal, the exclusive importer of a major brand would be barred from distributing other major brands. Monopolies would also be prohibited from managing trade agreements on behalf of small suppliers or serving as their distributors.
The plan also calls for measures to break up Shufersal’s regional monopoly. Under the proposal, a corporation that holds a regional monopoly would be required to sell some of its stores in that area. The company would also face restrictions on opening new branches, including Shufersal Sheli locations.
Fixed grants for farmers
The party proposed providing farmers with direct support through fixed grants. It also called for a set of assistance programs for farmers and the agricultural sector, as well as grants and state-guaranteed loans to support mechanization and improve efficiency.
The measures would be implemented alongside the removal of regulations that restrict competition and the gradual elimination of tariffs.
“In the war against the cost of living, the farmers will be on our side,” the party stated. “We will bring Israeli farmers’ conditions in line with those of European farmers, and only afterward will we open the market to competition. In this competition, Israeli agriculture will win.”
Kosher-certification competition
The plan also calls for greater competition in the kosher-certification market and would allow consumers to choose from a range of kosher certifications. It would not change the Chief Rabbinate’s process for granting kosher certification.
“Lowering prices requires courage,” said Bennett. “We will wage a struggle against the strongest monopolies and pressure groups in the country, which have grown accustomed to no one touching them.
“The ministers in the current government are incapable of dismantling monopolies because they are afraid. We will protect Israeli workers, dismantle the monopolies, and increase competition. I owe them nothing. They will attack us, but I am prepared to pay the price in order to lower prices for you.”
