President Herzog; BOI Governor; MK Mansour Abbas; PMO’s Prof. Avi Simhon and Other Key Leaders Kick Off the Eli Hurvitz Conference

Press Release | IDI Eli Hurvitz Conference 2025 | May 27, Morning Sessions

The Israel Democracy Institute kicked off its Eli Hurvitz Conference on Economy and Society 2025, convening top politicians, economists, business executives, and civil society leaders to envision a path forward for Israel's economy and society, as we grapple with over a year and a half of war.

The conference continues this afternoon and tomorrow. Review the speaker list and watch the livestream (mostly in Hebrew). 

Live updates will continue to be posted throughout the conference on IDI’s X account @IDIisrael.

President of the State of Israel Isaac Herzog set the stage for the conference: “The strength of the Israeli economy cannot exist without well-organized policy in all areas - courageous policy that takes a sober look at our political, security, social and economic challenges. A policy that builds an Israeli future in which all parts of society participate with the sacred right – not the burden – but the privilege, to build and defend the country. To grow the economy with dedication and determination".

IDI President Yohanan Plesner zoomed in on one of the key issues facing Israeli society - and being covered in the conference - in his opening remarks: “The Haredi community is part of Israeli society; an important part of its future. It is time for it to also be part of its economic engine. To achieve this, the state must insist on two fundamental conditions: mandatory conscription for all and a fundamental change in the funding model of Haredi education. Conscripting Haredim is a security necessity but also essential for employment integration. Those who do not enlist will bear a significant economic cost".

IDI William Davidson Senior Fellow for Economic Policy Prof. Karnit Flug: “Despite Israel’s short-term economic resilience, the long-term economic, social, and demographic processes—combined with a heavy security burden—are likely to lead to a slow deterioration, which could accelerate without a dramatic change in policy and governance".

Governor of the Bank of Israel, Prof. Amir Yaron: Governor of the Bank of Israel, Prof. Amir Yaron: "Unlike the post-COVID period, when we experienced growth, what we see now is a moderate and slow recovery due to the nature and duration of the shock. Macro forecasts are a complex task, certainly in a period of high volatility and uncertainty as we are experiencing, but I can say with caution that the forecasts of the Bank of Israel's research division were mostly not far from what actually happened. However, it is important not to get carried away by optimistic scenarios. Wishful thinking is not a work plan" He added: "There is a vast body of economic literature that points to a positive correlation between strong state institutions and sustainable growth--this year a Nobel Prize was awarded for this. The more damage allowed to be inflicted on state institutions, the more this may affect the economy. In the state of the economy, with all its challenges, this is not the time to add more challenges and risk factors".

MK Mansour Abbas, Chair, Ra'am Party: "Crime in Arab society is heading towards a new record in 2025 and the black market is essentially operating as economic organizations. Israel is failing to control it. There is no governance in Arab society, it is a state within a state, alongside a discriminatory banking system. Therefore, there can be no economy and no growth without eradicating crime".

Maxim Rybnikov, Director and Lead Analyst, EMEA Sovereign & Public Finance Ratings, S&P Global Ratings, discussed Israel's weaknesses and strengths from the perspective of S&P, noting that despite the downward ranking related to the security situation in Israel, "Israel's largest strength by far is the innovative and resilient Israeli economy. I’ve spoken to many analysts in Israel and internationally and...it’s quite remarkable that these numbers are coming from a country with the current security situation of Israel. We know the Israeli economy has bounced back from past shocks, and this is a key strength." Discussing the weaknesses, he said: “We see less cohesive civic society, we see very significant external security risks, and elevated political volatility in recent years".

Prof. Avi Simhon, Chair, National Economic Council in the Prime Minister’s Office was critical of how the debate on Israel’s system of checks and balances has played out in recent months: "How can a government set policy if it’s not allowed to appoint officials? Is it supposed to project leadership from above? The only way is by appointing senior officials to carry out its policies. But the rules of the game have changed—and are continuing to change rapidly, only in the opposite direction: the previous government appointed a Chief of Staff after it lost the election, while this government isn’t allowed to appoint anyone—not a police commissioner, not a Shin Bet chief".

Dr. Eyal Hulata, International Fellow, Foundation for Defense of Democracies (FDD); former National Security Advisor: “I am listening to the back and forth here and I am not sure that I recognize a huge gap in the data, but I do see one in the interpretation--and especially if that becomes a political tool in Israeli polarization. I’m worried if this is happening in security policy, it should not be a surprise that it is happening in our economic policy as well… I say this because Israel does not have a security doctrine. Not one that was written down properly… I spoke with three prime ministers, Bennett, Lapid and Netanyahu, as a matter of concluding a strategic assessment for 2022. There were no major disagreements about the core pillars of Israeli national resilience, political security, economy and society. There was also no major difference in the prioritization, but something happened along the way".

The conference will continue this afternoon and tomorrow. Stay with us on the livestream and follow along for key quotes in English on IDI’s X account.