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Time for an austerity government

This is an opportunity to change the country's economic and administrative character in a profound manner and should be the next government's primary and exclusive mission over the coming years.

The truth must be told: No one votes for a unity government. There isn't a politician alive who runs on a campaign promise to compromise his principles in order to reconcile with the other side, and no one drops a vote into the ballot box for "ideological concessions." A unity government, like many things in life, is by definition a bad government from an ideological perspective.

A unity government is a circumstantial necessity, the product of inconclusive elections and the weakness of the political system. It is also preferable in certain situations to the alternatives. The Right couldn't reach 61 mandates in three consecutive elections. Who can guarantee a fourth election would be any different? In contrast to a minority government supported by the Joint Arab List, or a left-wing government with some right-wing elements, unity isn't a bad thing. Similar to democracy, it is a very bad thing, but also the least bad thing when compared to anything else that's been tried to this point. And this past year we've tried quite a few times already.

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Unity, however, also comes with advantages. First and foremost, a unity government fosters stable leadership and provides shoulders large enough to implement initiatives with broad national consensus. These are critical factors in contending with a national crisis, and should not be minimized.  

But contrary to what many are saying, the next government's main challenge isn't the coronavirus. Most of the key policy decisions for coping with the crisis have already been made, and even under a complete transfer of power, it's hard to believe someone would drastically alter them. Regardless, until the new government is sworn in, we can assume the worst of the crisis will be behind us. The biggest challenge for this government, if and when it is established, will be rehabilitating the country from the ravages of the virus.

Here the main problem is economic. The citizens will be broke, many will be unemployed. The government will have to help them on one hand, but on the other, its resources will be limited due to the paralyzed economy and a sharp drop in tax revenue. Hence the first order of business is to drastically slash the budgets of government ministries. This will let the government give recovering businesses some tax relief and also free resources for other urgent measures.

In the past, Netanyahu has been able to make tactical political concessions for the sake of strategic achievements. And now he is being put to the test: The order of the day is a modest national austerity government. Within this framework, there will be a need not only for temporary yet broad budget cuts but for profound structural reforms of Israel's system of government.

There will be a need to shut down or privatize non-essential bodies, such as Army Radio and the Kan public broadcaster; significantly reduce the scope of activity and jurisdiction of the Culture, Education and Welfare ministries; fundamentally reform the social security system; spearhead a taxation revolution; slash budgetary pensions; and fundamentally change the country's service providing apparatuses, including abolishing tenured positions and sending home tens of thousands of talented government employees who can apply their skills in the private sector.  

These steps will also require legal freedom of action, not mention a strong backbone against the clerks in the Justice Ministry (whose budget must also be cut) and the courts,

This is an opportunity to change the country's economic and administrative character in a profound manner and should be the primary and exclusive mission over the coming years. If Netanyahu wants to secure his place in the history books, he will have to focus on this issue only. All the rest will be forgotten and forgiven, but the coronavirus crisis and the opportunity it has provided must not be squandered.  

Currently, the distribution of ministerial portfolios doesn't indicate good tidings. Yet we must remember that the 1985 Israel Economic Stabilization Plan, which marched Israel into the 21st Century, was implemented by a unity government. Who knows? Maybe Amir Peretz and Avi Nissenkorn will discover the same sense of national responsibility as Shimon Peres back in the day.

 

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