The former prime minister and chairman of the Together party, Naftali Bennett, launched yesterday his "New Deal for the Economy" plan, which includes a series of aggressive regulatory steps to reduce the cost of living in Israel. The plan sets a target to align food prices in Israel with their average level across OECD countries, aiming to save families approximately NIS 8,000 per year. This comes against the backdrop of Israel being ranked 5th among OECD nations in the food price index.
The plan focuses on three central steps: Reducing concentration in the economy by mandating the dissolution of monopolies, banning exclusive importers from distributing additional major brands, and dismantling Shufersal's regional monopoly by forcing the company to divest from its stores in highly concentrated areas.
In the agricultural sector, Bennett proposes a transition to direct support and fixed grants for farmers alongside a gradual abolition of customs duties, with a commitment: "We will align the conditions of Israeli farmers with those received by European farmers, and only then will we open the market to competition." The third pillar concerns the kosher market, where the reform "What is kosher in Europe is kosher in Israel" will be applied: This will recognize accepted Haredi kashrut certifications from around the world, without altering Chief Rabbinate procedures.
"Addressing the cost of living will be anchored in the coalition agreements," Bennett told Walla, "We will start with consumer goods, specifically focusing on food, because it is impossible to live here. When I was a 25–year–old student, prices in Israel were fine. There are hundreds of actions that need to be taken, but it takes balls to do it. I do not care about going head–to–head against Shufersal, Schestowitz, Tnuva, and Unilever. At the end of every bottleneck, there is a monopoly. And the best example of this is that even though the dollar has weakened, prices did not go down."
"We will ban exclusive import agreements. This is not an infringement on the freedom of occupation, and it exists in European Union countries. There is concentration here, blocking of imports, high tariffs, problematic standardization, and trade restrictions. Not to mention the kosher issue, which prevents us from importing products that are kosher abroad but not here."
"I am going to break up Shufersal's monopoly," Bennett clarified, "There are many areas in Israel where, in a specific neighborhood, there are several Shufersal formats that coordinate prices among themselves, essentially creating a cartel. I am taking a personal risk here, but we will force them to sell stores and generate competition. We will provide a grace period and bring in additional players. This will not be a Shufersal Law, but when half of Shufersal's branches constitute a regional monopoly, it cannot continue."
"And there is Schestowitz, Unilever, and Diplomat. Brand monopolies. And there is an example that drives me crazy: Colgate in Israel is dozens of percent more expensive than abroad. Schestowitz is its importer, they are also the importers of Meridol, and that is exactly what the prices look like. Gillette costs €48 in Europe, and NIS 82 in Israel. Speed Stick costs €9.50 in Europe, and NIS 20 here. This is the result of exclusive importing. I want to reach a situation where whoever wants to enter the market can enter without restriction. What is happening here is anti–Zionist. I will be a determined prime minister. I have my advantages and I have my disadvantages, but there is one thing everyone agrees on, which is that I know how to work. I will lower consumer goods by 30 percent within two years. I am the only one who has managed a company; I know how to issue an invoice, how to manage employees, and also how to be a monopoly. I was a monopoly until they started interfering with me."
"Let's talk about kosher," Bennett concluded, "We are going for: What is kosher in Brooklyn is also kosher in Israel. And I say this precisely as a religious person. Orthodox kosher certification abroad cannot possibly go unrecognized in Israel. When that happens, there will be no need for five thousand new kosher supervisor jobs courtesy of Deri. There is also a cartel of the large banks, which have insane profit margins. One of the big problems is that small banks fail to gain traction because the consumer is not sure they will survive. We will do what happens in the United States: There, they have deposit insurance. If the bank collapses, the money is guaranteed. More small banks will enter, and the consumer will feel more comfortable switching to them. I am against piggish profits."
Schestowitz stated in response: "Exclusivity has long ceased to exist, the market has opened up to competition, and there are many importers for the products mentioned. To the extent that Mr. Bennett identifies price gaps, they are certainly not the result of an exclusivity that is no longer there."