Prime Minister Binyamin Netanyahu warned Sunday that hasty reforms could bankrupt Israel. He is under pressure from protests that are being organized by the Israeli left wing and its representatives in the press, to lower the cost of housing and socialize the economy.
Addressing the weekly Cabinet meeting, Netanyahu said: "I asked Prof. Manuel Trajtenberg to submit concrete solutions to the Social and Economic Cabinet during the month of September, as quickly as possible – but not too quickly. We are dealing with complex issues here."
He added: "We intend to arrive at concrete solutions. Not generalizations, but rather concrete solutions to concrete problems of reducing the cost of living and the closing of gaps in the State of Israel, gaps including those between the periphery and the center. For that purpose we must receive recommendations which characterize choice. A change of priorities means a choice, a choice between various constraints."
"One of the central constraints which we work under is the world economy," he explained. "The world economy is presently experiencing a serious spasm… We know one thing: We want to find solutions that are economically sound. For if we end up bankrupt or face economic collapse, a reality in which some of Europe's leading economies find themselves in today, we will solve neither the economic problems nor the social ones. Therefore, responsibility is demanded of us, financial responsibility alongside social sensitivity. That is the necessary formula and we will bring about practical solutions."