Histadrut Chairman Arnon Bar-David: “Israel needs a restart – now”

Speaking at the Eli Hurvitz Conference of the Israel Democracy Institute in Jerusalem, Histadrut Chairman Arnon Bar-David delivered a powerful call for immediate national renewal and economic reform.

“The most important growth engine for the economy right now,” said Bar-David, “is ending the current government’s term or changing its direction. Once that happens, we will be able to make real changes and return to a path of sustainable growth.”

Bar-David warned that Israel’s current trajectory is unsustainable. “We cannot manage an economy that lives in a constant state of uncertainty. The coronavirus pandemic was one thing—it was beyond anyone’s control. But the judicial overhaul, the war that never ends, and the hostages who have yet to return—these are policy failures.”

He criticized the lack of foresight in government ministries: “No office is planning ahead. It’s no coincidence we were caught off guard, we’re simply not prepared. When unqualified people are in charge, performance suffers. We are a nation with great workers, great industry, and innovation, but we are functioning without direction. Fortunately, the workforce is still producing. Otherwise, things would be far worse.”

Bar-David emphasized the urgent need for economic inclusion and national unity, calling for the full integration of the Haredi community into both the military and labor market. “We need the Haredim to be part of the workforce so that we can continue building Israel’s future. Otherwise, everything will grind to a halt. We also need them to serve alongside our children in defending the country. This isn’t happening because of political considerations, and that has to stop. We cannot carry on like this. We must pause, reset, and restart—now.”

In a pointed critique of recent leadership confusion, Bar-David mocked the unstable decision-making process in national security appointments: “Four potential Shin Bet directors have been named, one after half an hour, another after half a day. Is this how your business operates? You appoint a manager at 8:00 and by 9:00 tell him not to start the job? This is not serious governance.”

Bar-David’s remarks were echoed by Dubi Amitai, Chairman of the Business Sector Presidency, who warned: “The Israeli economy is like a cargo ship being overloaded. At this pace, we risk sinking.” He called for a long-term strategy focused on competitiveness, innovation, and reduced regulatory burden. “We can’t reinvent the wheel with every new government. The time has come to think ahead and act.”

Also speaking at the event, Adi Brender, head of the Research Division at the Bank of Israel, noted that Israel lags behind OECD countries in per capita GDP, citing underinvestment in public infrastructure and a growing skills gap—particularly in reading, math, and problem-solving among the Haredi and Arab populations. “We must urgently improve education systems, especially for sectors that are currently left behind.”

Dafna Aviram-Nitzan, Director of the Center for Governance and Economy at the Israel Democracy Institute, concluded: “Focusing on growth is not a luxury—it’s a national necessity. A stronger economy means stronger civil services, and that is what Israel urgently needs.”