BICOM

Prime Minister Benjamin Netanyahu yesterday announced the formation of a task force to formulate policies designed to address the demands of the protests against the high cost of living which have swept Israel in the last days. Netanyahu announced the move at the start of the weekly Cabinet meeting. In his remarks before the meeting, the Prime Minister said that the government would change its list of priorities to deal with ‘genuine’ claims of distress, while avoiding what Netanyahu called ‘irresponsible’ and ‘populist’ steps. Netanyahu is expected to ask Finance Minister Yuval Steinitz to head the new committee.

A press conference on Sunday held by the protesters indicated that they remained sceptical over the government’s initiative. However, it remains to be seen if Netanyahu’s latest move will be sufficient to satisfy protesters. Over the weekend, large demonstrations took place across the country, calling for fundamental change in Israel’s priorities and fair and equitable economic growth. Around 70,000 people took part in a protest in Tel Aviv – the largest of the demonstrations held. In Jerusalem, 10,000 people marched to the Prime Ministers’ official residence, where a rally was held. A 10,000 strong demonstration also took place in Haifa. Protests in Israel are likely to intensify with municipal workers going on strike this morning, in solidarity with housing protesters, and the 70,000 strong teachers union announcing its intention to join demonstrations. Protesters are attempting to formulate a clear set of demands, which include affordable and public housing, free public education, government assistance to students and quality public medical care.

Knesset Speaker Reuven Rivlin, speaking on Army Radio on Sunday, described the protests as representing an ‘economic, social, cultural and conceptual revolution.’ Rivlin, a Likud lawmaker, called on the government to reassess its priorities. Opposition Leader Tsipi Livni and Interior Minister Eli Yishai of Shas have called for the canceling of the Knesset’s summer recess to enable the parliament to address issues raised by the protests.

In a separate but related development, Finance Ministry Director General Haim Shani shocked the country’s leadership yesterday with the announcement he would be leaving the ministry over differences of opinion. The leading candidate to replace Shani is reportedly Moshe Terry, who was Israel Securities Authority chairman up until three years ago.