There can be no social policy without economic policy, Prime Minister Benjamin Netanyahu said Thursday in a speech at the Globes Israel Business Conference in Jerusalem.
"The two cannot be separated. When someone is in favor of one over the other, I ask myself who is going to pay," Netanyahu continued.
The prime minister began his address by discussing his cooperation with Finance Minister Moshe Kahlon, saying, "We work together excellently. We will continue [to do so] for many years to come."
Netanyahu said he was about to pass the 2019 state budget in the cabinet. "We will present an excellent budget that will serve the citizens of Israel. Within two months, it will be presented for a second and third reading."
Touching on U.S. President Donald Trump's recent tax reforms, Netanyahu said that "we talked about reducing taxes, but now Kahlon and I are considering lowering taxes even more than we said we would. Our main effort is to reduce regulation. We have already dropped from 91st [in the world] in terms of regulation to 46th. In talking with many of you, I heard that you used to cry – really cry – over regulation in Israel. We will reduce regulation. I want us to be among the top 10 most deregulated countries [in the world], in terms of competition. It's still far off, it will be difficult, but we can do it."
The prime minister emphasized that "economic strength is at the forefront of the Israeli economy, and the Israeli economy is built on our ability to develop growth from which we will benefit by taxes. Economic strength gives us the ability to build a base of security, and also [helps] develop technology."
"There is a country that had brilliant mathematicians and engineers, and the country didn't develop their capabilities. Their education was at a high level, but no wealth was generated – that country is the [former] USSR. There is a giant superpower called China, but it didn't take off because it was competing against free markets in the West. You need the free market element. For there to be growth, you need a free market. [Government] clerks don't create money. It's the firms that bring in the money, the businesses, and they must be allowed to succeed or fail."
According to the prime minister, "Israel is currently enjoying an unprecedented combination of diplomatic, economic and military strength, and it is changing the country beyond recognition."
"We achieved control over the expenses of the public sector, which guzzles money," he said, reiterating the refrain he often repeated while serving as finance minister: "The goal is to increase the private sector and cut back on the public sector, and we need to limit ourselves in terms of future government commitments."
Netanyahu also commented on the media.
"There are sectors that are trying to seize control of the media, but I never tried to grab control of it – just open it to competition and to a variety of opinions. What we are doing with the current Arrangements Bill is to cut back on regulation, and allow everyone to compete in the media market."
Netanyahu concluded his speech by saying that "a growing economy requires the basic element of lowering taxes, because a tree will not bear fruit if it isn't watered. Everyone wants to reap the fruits, but only a few know how to make them grow."
