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In Israeli Campaign, Netanyahu Sees Vulnerability in Soaring Living Costs Cost of Living Takes Center Stage in Israeli Elections
(about 7 hours later)
JERUSALEM — As Israel’s election campaign began this week, Prime Minister Benjamin Netanyahu did not aim his opening shot at foes like Iran and Hamas. He addressed more immediate concerns of many Israelis: their low bank accounts and empty wallets. JERUSALEM — As Israel’s election campaign began this week, Prime Minister Benjamin Netanyahu did not aim his opening shot at foes like Iran or Hamas. He addressed the more immediate concerns of many Israelis: their low bank accounts and empty wallets.
Seeking a fourth term in the snap election called for March, Mr. Netanyahu may feel relatively confident when it comes to his security credentials. The 50-day war he led against Palestinian militants in Gaza this summer won broad support in Israel. And on Tuesday, his defense minister, Moshe Yaalon, told a parliamentary committee that a recent wave of Palestinian violence against Israelis appeared to be diminishing. Seeking a fourth term in the snap election called for March, Mr. Netanyahu may feel relatively confident when it comes to his security credentials. The 50-day war he led against Palestinian militants in Gaza this summer had broad support in Israel. And on Tuesday, his defense minister, Moshe Yaalon, told a parliamentary committee that a recent wave of Palestinian violence against Israelis appeared to be diminishing.
But Mr. Netanyahu is apparently expecting a battle with political rivals over the basic cost of living in Israel, which is increasingly unaffordable for many. But Mr. Netanyahu is apparently expecting a battle with rivals over the cost of living in Israel, which is increasingly unaffordable for many.
In what analysts here saw as a pre-emptive strike, Mr. Netanyahu announced at an economic conference on Monday that if re-elected, he was committed to introducing a law exempting basic food from the 18 percent value-added tax, similar to a sales tax. He also promised to double the grant given to demobilized combat soldiers. In what analysts here saw as a pre-emptive strike, Mr. Netanyahu announced at an economic conference on Monday that if re-elected, he was committed to introducing a law exempting food staples from the 18 percent value-added tax. He also promised to double the grant given to demobilized combat soldiers.
The announcement was a direct countermeasure to Yair Lapid, the former finance minister and the leader of the centrist Yesh Atid party, who had advocated legislation to sell apartments tax-free to first-time buyers. Mr. Netanyahu at first supported the legislation but then reversed himself. The announcement was a direct countermeasure to Yair Lapid, the former finance minister and the leader of the centrist Yesh Atid party, who backed a bill to allow first-time homeowners to buy apartments tax-free. Mr. Netanyahu at first supported the bill but then reversed himself.
Mr. Netanyahu, of the conservative Likud Party, dismissed Mr. Lapid last week, along with Tzipi Livni, his centrist justice minister, breaking up the governing coalition and calling the early election less than two years after the last one. Mr. Netanyahu, of the conservative Likud Party, dismissed Mr. Lapid last week, along with Tzipi Livni, his centrist justice minister, breaking up the governing coalition and calling elections less than two years after the last one.
“I was not a fan of the zero percent VAT bill,” Mr. Netanyahu said at the Globes Israel Business Conference, referring to Mr. Lapid’s proposal. “I thought that that bill might distort the housing market and produce a rise in prices.”“I was not a fan of the zero percent VAT bill,” Mr. Netanyahu said at the Globes Israel Business Conference, referring to Mr. Lapid’s proposal. “I thought that that bill might distort the housing market and produce a rise in prices.”
Mr. Netanyahu also said he believed the bill would only have benefited about 14,000 Israelis who are already sufficiently wealthy to make large deposits on apartments. Mr. Netanyahu also said he believed the bill would have benefited only about 14,000 Israelis who are already have enough money to make large deposits on apartments.
But tax-free food “is a benefit that will reach millions of people,” he said. “Bread, milk, eggs. That plan will save every family hundreds and even thousands of shekels every year. That is social justice.”But tax-free food “is a benefit that will reach millions of people,” he said. “Bread, milk, eggs. That plan will save every family hundreds and even thousands of shekels every year. That is social justice.”
The high cost of living and the lack of affordable housing brought hundreds of thousands of Israeli protesters out onto the streets in 2011. Mr. Lapid, a newcomer to politics in the 2012 election, campaigned on social justice issues and won a startling 19 seats in the 120-seat Parliament, making Yesh Atid the second-largest party and a critical coalition partner.The high cost of living and the lack of affordable housing brought hundreds of thousands of Israeli protesters out onto the streets in 2011. Mr. Lapid, a newcomer to politics in the 2012 election, campaigned on social justice issues and won a startling 19 seats in the 120-seat Parliament, making Yesh Atid the second-largest party and a critical coalition partner.
But few Israelis seem to have felt any improvement in their finances, and recent polls indicated that Yesh Atid would get only half that number of seats this time around. But few Israelis seem to have felt any improvement in their finances, and recent polls indicated that Yesh Atid would get only half that number of seats in March.
Mr. Netanyahu’s announcement was also a concession to Israel’s ultra-Orthodox parties, his longtime allies, who were excluded from the last government on Mr. Lapid’s insistence. Their constituents, mostly large families, stand to gain the most from a reduction in food prices. Mr. Netanyahu will most likely need the support of the ultra-Orthodox parties if he wins enough votes to form the next government.Mr. Netanyahu’s announcement was also a concession to Israel’s ultra-Orthodox parties, his longtime allies, who were excluded from the last government on Mr. Lapid’s insistence. Their constituents, mostly large families, stand to gain the most from a reduction in food prices. Mr. Netanyahu will most likely need the support of the ultra-Orthodox parties if he wins enough votes to form the next government.
In a taste of the campaigning ahead, Mr. Netanyahu’s rivals ridiculed what they called his election economics.In a taste of the campaigning ahead, Mr. Netanyahu’s rivals ridiculed what they called his election economics.
“Where was this wonderful plan until now?” Mr. Lapid asked in mock puzzlement. “Did you hide it? Did you think it up just last night?”“Where was this wonderful plan until now?” Mr. Lapid asked in mock puzzlement. “Did you hide it? Did you think it up just last night?”
Noting that he had been the finance minister until a week ago, Mr. Lapid said the prime minister had vehemently opposed imposing price controls on basic food products. He said Mr. Netanyahu’s “point of departure is that the voter is a 4-year-old child” to be tempted by sweets or scared by threats.Noting that he had been the finance minister until a week ago, Mr. Lapid said the prime minister had vehemently opposed imposing price controls on basic food products. He said Mr. Netanyahu’s “point of departure is that the voter is a 4-year-old child” to be tempted by sweets or scared by threats.
Shelly Yacimovich, a leader of the center-left Labor Party, which led the opposition in the outgoing Parliament, also criticized Mr. Netanyahu, saying that in his previous three terms as prime minister and his term as finance minister, he had fought every similar proposal. In a post on her Facebook page, she wrote: “Is there no limit to cynicism? No.”Shelly Yacimovich, a leader of the center-left Labor Party, which led the opposition in the outgoing Parliament, also criticized Mr. Netanyahu, saying that in his previous three terms as prime minister and his term as finance minister, he had fought every similar proposal. In a post on her Facebook page, she wrote: “Is there no limit to cynicism? No.”
Ben Caspit, a political columnist, satirized Mr. Netanyahu’s latest promises in the Maariv newspaper on Tuesday. “What can I tell you, it’s time to appoint this Netanyahu as prime minister,” he wrote. “Oh, he’s already prime minister? He has been for the last six years? For the third time, nine years in total??” Ben Caspit, a political columnist, satirized Mr. Netanyahu’s latest promises in the Hebrew-language Maariv newspaper on Tuesday. “What can I tell you, it’s time to appoint this Netanyahu as prime minister,” he wrote. “Oh, he’s already prime minister? He has been for the last six years? For the third time, nine years in total?”
He added: “All right, we forgot for a moment. We forgot that Mr. Netanyahu is the main person, almost the sole person, responsible for the collapse of the middle class in Israel.”He added: “All right, we forgot for a moment. We forgot that Mr. Netanyahu is the main person, almost the sole person, responsible for the collapse of the middle class in Israel.”