Yair Lapid
Yair LapidFlash 90

Israel plans to fully or partly privatize a number of large state-owned companies in a move aimed at boosting efficiency, reducing the national debt and fighting corruption.

The decision, approved by the ministerial socio-economic cabinet, was expected to add around 15 billion shekels ($4 billion) to state coffers over the next three years, the finance ministry said Sunday as reported by AFP.

Minority stocks will be issued for firms "in which the state has an interest in retaining long-term governmental control" such as Israel's electricity corporation, aviation, trains, water, mail and natural gas industries, a ministry statement read.

It will also sell companies in which it has "no long-term interest," such as the ports at Ashdod and Haifa, a modified and declassified military industry (with the state retaining the right to determine the ownership), the Dead Sea Works and others.

Prime Minister Binyamin Netanyahu said in a statement the "reform" will "increase the state's income and enable greater transparency in government companies."

According to Finance Minister Yair Lapid (Yesh Atid), the move is "an additional measure to end the politicization of companies and reduce corruption in them."

Netanyahu had previously overseen a series of privatizations when he was himself finance minister some 10 years ago. But the companies sold off then were "easy" compared to what was currently on the privatization list, one economics expert said.

"I can't see these things going ahead," Michael Beenstock of Hebrew University's economics department told AFP, noting that powerful unions at Ashdod port and in the electricity company have prevented any reform or change for decades.

While Lapid and Netanyahu may be successful in privatizing some smaller estate enterprises, the electricity corp and Ashdod port are "not going to take this lying down."

Indeed workers at the Haifa Port launched a strike on Monday morning, complaining over the uncertainty over their employment future amid negotiations with the histadrut trade union in light of plans for new privatized ports.

"To break these things you have to put the country into misery for a long time," Beenstock said, and Netanyahu and Lapid are "not going to do it."