The credit rating company Moody’s published a report on the State of Israel today (Tuesday) and stated in it that the continuation of the social and political situation in which the country is in could lead to economic risk.
The Prime Minister and Finance Minister responded: “This is a momentary reaction, when the dust settles it will become clear that Israel’s economy is very strong.” The defense industries are bursting with orders, the gas industry is increasing exports to Europe and 7 companies are currently competing for tenders for gas exploration in Israel with an investment of billions, Intel is planning its largest investment outside the US and will invest 25 billion dollars in Israel, Nvidia is building a supercomputer in Israel, and we are promoting artificial intelligence, cyber and chip manufacturing in Israel, the employment market is tight, growth is rising and inflation is slowing down, regulation removed and free market competition increases. Israel’s economy is based on solid foundations and will continue to grow under experienced leadership that leads a responsible economic policy.”
The chairman of the Histadrut, Arnon Bar-David, commented on the report: “Tonight we received further proof of the cost of the crisis in Israel, not only in the social aspect but also in the economic aspect. The rating agency’s dire comments are a glaring warning sign to anyone who has so far ignored the need for broad consensus on reform. Already today, despite the responsible policy of the Bank of Israel, our country pays much more to finance its debt. These are billions that the government diverts to interest payments instead of investing them in education, health and welfare. Continuing legislation without consensus will fuel inflation and the weakening of the shekel, and the result is that many more Israelis will have difficulty closing the month. I call on the Prime Minister and the Minister of Finance to come to their senses, show responsibility and immediately stop the damage to the economy. The Histadrut under my leadership will continue to lead mediation efforts for the benefit of the economy in particular and the people of Israel in general.”
Chairman of the Yisrael Beitenu party, MK Avigdor Lieberman, in response to the Moody’s report: “As Sara Netanyahu said – ‘We will move to the outside of the country, that this country will burn.’ So Netanyahu is burning.”
MK Naama Lazimi in response to Moody’s warning: “Netanyahu and Smotrich knew that these serious warnings would come. They knew they were risking tens of billions of dollars in potential investments in Israel. They knew they promised one thing to the credit rating companies and knew when they broke it. The next time high-tech companies fail to raise investors, or when the next wave of layoffs comes – the entire blame lies with the government. And yes, we should be concerned about the loss of state revenues, and no less than the damage to our pensions and savings. Unfortunately, the public is not stupid, but the public is the one who pays.”