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Inside Israel

Bibi?s ?Reaganomics? wins acclaim


By Jerusalem Newswire Editorial Staff
July 14, 2004

Finance Minister Binyamin Netanyahu and his Reaganomics-style policies have succeeded in putting Israel’s economy on the road to recovery, despite a “Palestinian” terrorist war that threatened to decimate the nation’s financial fortunes.

And his efforts, while being ridiculed by political opponents at home, are being applauded by some of the world’s top financial institutions.

Last month, international financial services giant Citigroup said Netanyahu had propelled himself into the ranks of such economic heroes as Ronald Reagan and Margaret Thatcher.

But while his successes are garnering acclaim, Netanyahu’s job is far from secure, with Prime Minister Ariel Sharon actively seeking a unity coalition with a socialist Labor Party intent on squashing the finance minister’s capitalist reforms.

Many long-time Sharon supporters believe the prime minister’s treatment of Netanyahu in the coming months will demonstrate whether he truly has his nation’s best interests at heart, or whether he is constantly shifting policies for personal political gain.

Critically acclaimed policies

"We will soon see the name of Benjamin Netanyahu enter the pantheon, along with Ronald Reagan, Margaret Thatcher and [former New Zealand finance minister] Roger Douglas," wrote financial giant Citigroup last month in a report circulated to its worldwide clientele base.

All of the aforementioned championed economic policies that cut taxes while creating an environment for increased investment.

Netanyahu has on more than one occasion said he was modeling his own policies on those of Reagan, Thatcher and Douglas.

Those policies may soon lead to an upgrade in Israel’s “negative” credit rating by international credit rating company Standard and Poor’s (S&P).

But S&P is concerned that with the current political instability in Israel, Netanyahu’s job may not be secure, and his policies only temporary should he be replaced.

"We are satisfied by your policy, but we want to know if you will continue in your role," S&P representatives reportedly asked Netanyahu when he visited them in New York last month.

S&P said Israel’s chances of having its credit rating raised to “stable” would be far better if Netanyahu remained in charge of the Treasury.

Shortsighted leftists

Predictably, Netanyahu’s capitalist reforms have come under scathing attack from his enemies on the left of the political spectrum.

In June, Labor Party chief Shimon Peres referred to Netanyahu’s policies as “greedy” and “piggish.”

Labor and its chief economic ally, the Histadrut labor union, have since their inceptions espoused a socialist agenda, which in recent years led to near financial collapse.

On the chopping block?

Despite the clear success of Netanyahu’s policies, the finance minister’s job appears to be anything but safe, with Prime Minister Ariel Sharon actively seeking a unity coalition with Peres’ Labor.

That union would secure Sharon in the prime minister’s chair for at least another two years, but would likely lead to the collapse Netanyahu’s economic reforms and the gains he has made.

Labor is looking to impose its own economic agenda on the Treasury should it be allowed into the coalition.

Sharon has thus far refrained from saying whether or not he would keep Netanyahu on as finance minister or protect his current policies in a national unity coalition.

Many long-time Sharon supporters believe the prime minister’s treatment of Netanyahu in the coming months will demonstrate whether he truly has his nation’s best interests at heart, or whether he is constantly shifting policies for personal political gain.

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