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Israel

Top three cabinet posts to change hands

March 14, 2013 15:30

By

Anshel Pfeffer,

Anshel Pfeffer

1 min read

All three top ministers in the Israeli cabinet below the Prime Minister — defence, finance and foreign affairs — are about to change. What does this mean for Israeli policy in the coming years?

Let’s start with the new finance minister, almost certain to be Yair Lapid. A 10-year-old video from Mr Lapid’s old chat show is doing the rounds right now and it shows host Mr Lapid saying to then Finance Minister Benjamin Netanyahu: “I don’t understand anything about economics.” Issues of knowledge aside, it is well-known that Mr Lapid has much in common with Prime Minister Netanyahu on economic issues: he is a capitalist who will continue Mr Netanyahu’s strategy of cutting taxes in order to encourage growth.

The only question is how that will work over the next few months: the government has to implement major spending cuts to shrink the deficit.

It would be safe to predict that Mr Lapid will let the professional economists in his ministry to do most of the work and propose the cuts, at least in this budget.