Yesterday's statement by Prime Minister Benjamin Netanyahu on the establishment of a committee to examine concentration of ownership in the economy does not include the word "concentration", with that it implies, even once. This might be a semantic change, but it might signal be that, after the huge number of populist comments that the issue has generated lately, the government intends to take it professionally and seriously.
It is also possible that, despite the numerous attempts to claim that the Israeli economy is disproportionately concentrated, including the presentation of incorrect data, someone up there has realized that that is not the case, and the talk is now about increasing competition in the economy.
The establishment of the committee is good news. First, it neutralizes the Knesset Finance Committee, where most of the populist bills and comments emerged, including the claim that "business groups" harm the country more than "crime families".
The committee also takes Netanyahu and Minister of Finance Yuval Steinitz out of the equation. A new page has been opened: no politicians. The ball has been sent to the senior officials, the professionals and serious men. All the committee members know well that Israel, in order to continue to thrive, cannot forego economic growth.
Committee chairman, Ministry of Finance director general Haim Shani, formerly the CEO of NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE), and Prime Minister's Office director general Eyal Gabai, who has privatized half of the government's holdings and recently headed a foreign investment fund, know well that there is no growth without the private sector.
Supervisor of Banks Rony Hizkiyahu and Israel Securities Authority chairman Zohar Goshen know well that forced separation between financial and non-financial holdings will only weaken the banks and insurance companies, which will undermine the stability of the entire financial system.
Bank of Israel head of research Karnit Flug knows well that Shari Arison is not responsible for Israel's income gaps and inequality, which mainly arise because, among other factors, substantial parts of the Arab and haredi (ultra-orthodox) populations do not work.
It is now possible to breathe a little easier.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2010
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