Meridor's Resignation Raises Serious Concerns

“Meridor's resignation raises serious concerns that management of the worst economic crisis Israel has encountered in recent decades is characterized by a lack of systematic policies or priorities"

Yohanan Plesner, President of the Israel Democracy Institute, on the resignation of Shaul Meridor, Head of the Budgets Department at the Ministry of Finance:

“Meridor's resignation raises serious concerns that management of the worst economic crisis Israel has encountered in recent decades is characterized by a lack of systematic policies or priorities, the absence of an approved budget, a disregard of commitment to fiscal rules and a dearth of sound professional economic leadership.

The upcoming retirement of the Accountant General, that is set to soon follow Meridor's resignation, raises serious concerns about the lack of senior professional management of the Finance Ministry. This would be similar to the situation in the State Attorney's Office and the police, where key leadership positions have already been entrusted to interim officials for long periods of time.

Among other issues, the continued weakening of the Budgets Department will allow elected officials to allocate financial resources without taking responsibility of designating the sources of the funding. This is sure to impact both short and long term attempts to stabilize the economy.”

Plesner also warned that, "Since the adoption of the hyperinflation containment plan in 1985, Israeli governments have maintained the Budgets Department's unique status as a fiscal gatekeeper. The perception that Israel's economic leaders are acting in an unprofessional manner and with a disregard for sound governmental policy could have a detrimental effect in the international markets that our leadership should seek to avoid."