As predicted by "Globes" yesterday, Prime Minister's Office director-general Eyal Gabai and Ministry of Finance director-general Haim Shani will head an inter-ministerial committee that will examine the question of concentration of ownership in the Israeli economy. Prime Minister Benjamin Netanyahu decided on the matter this afternoon..
Netanyahu convened a special discussion attended by all the regulators in the economy, the minister of finance, the governor of the Bank of Israel, ministry directors, and the chairman of the National Economic Council. It was ultimately decided to establish a committee that will submit its recommendations to the prime minister, the minister of finance and the governor, within four months.
The members of the committee will be Supervisor of Banks Rony Hizkiyahu, Securities Authority chairman Prof. Zohar Goshen, Finance Ministry Budget Director Dr. Udi Nisan, Deputy Attorney General for Economics and Fiscal Affairs Adv. Avi Licht, Antitrust Authority director Ronit Kan, head of the National Economic Council in the Prime Minister's Office Professor Eugene Kandel, and director of the Bank of Israel Research Department Dr. Karnit Flug.
The prime minister defined the committee's aim as being to improve the security of the public's financial assets and protect the funds of investors in public companies, as well to improve the stability of the financial system in general and the banking system in particular. A third aim was defined as "to increase competition and efficiency in economic activity."
Finance Minister Yuval Steinitz welcomed the decision, and said this evening: "A courageous decision was made to establish a serious committee that will examine in a professional and responsible manner the concentration of ownership that exists in the Israeli economy."
In an initial response from the leaders of Israel's business community, IDB controlling shareholder Nochi Dankner, who strongly denies that the Israeli economy suffers from excessive concentration of ownership, was quick to back the decision. An announcement from IDB said, "The IDB group welcomes the establishment of a professional committee to increase competitiveness. IDB will be happy to cooperate with the committee in any way that might be required, in order to ensure that the economy will continue to be competitive, strong and efficient."
Published by Globes [online], Israel business news - www.globes-online.com - on October 13, 2010
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