New Finance Minister Moshe Kahlon said Monday that increasing competition in the economy and bringing down housing prices will be at the forefront of his economic policies. "My worldview is that competition is the consumer's best friend," Kahlon said. "The lack of competition means Israelis have to pay more [for goods and services]. Unfortunately, the [financially] weaker people are, the more they are made to pay, and the stronger and more affluent they are, the less they pay -- in banking, in management fees, in commissions, in every aspect of our lives. These distortions have to stop." Kahlon's first official meeting as finance minister focused largely on banking reform, which was a major issue touted during his election campaign, as well as his proposed reform in the credit system, which he seeks to open to competition. Israel's credit market is dominated by a trio of issuers: Isracard, controlled by Bank Hapoalim; Leumi Card, a subsidiary of Bank Leumi; and Visa Cal, operated by Mercantile Discount Bank. Kahlon seeks to sever the companies' links to the banks, introduce new players, and promote an individual credit scoring model, similar to that used in the U.S. and the EU. Also on Monday, the government afforded Kahlon an extension to present the 2015-2016 budget bill. The government means to amend Basic Law: The Knesset, to afford the finance minister 175 days to pass the state budget, instead of the 100 days currently stipulated under the law, setting the deadline for the budget proposal at Nov. 5. Meanwhile, the Knesset Arrangements Committee, which oversees the Knesset's administrative duties until its committees and secretariat are fully staffed, has given the Joint Arab List the chairmanship of the Knesset's Committee on the Status of Women and Gender Equality. With 13 Knesset seats, the Joint Arab List is the third-biggest party in parliament, entitling it to head a statutory committee. The party chose to realize this right by asking to head the Committee on the Status of Women and Gender Equality. The party has yet to name the MK who will chair the committee on its behalf. The Joint Arab List's position in the Knesset also made it eligible for a seat on the Knesset's Foreign Affairs and Defense Committee, but it chose to forfeit the position in exchange for two seats on the Knesset's Finance Committee.
Credit: Reuters
During his first official meeting with Finance Ministry officials, Kahlon said he already had "plans" to deal with the housing crisis and banking reform, but qualified this by adding, "Speaking with ministry officials, I saw that they already have some plans ready as well. The director general presented me with reform proposals, and I hope we can realize at least 15 percent of them. We are committed to [economic] growth."
