Israel Paying High Price for Crisis: Histadrut Chairman Reacts to Moody’s Damning Review

Jul 25, 2023

Arnon Bar-David, Chairman of the Histadrut, has reacted this evening (Tuesday) to the alarming report issued by the international credit rating agency, Moody’s, underlining the devastating toll that the ongoing crisis is exacting on Israel, both socially and economically.

“Tonight, we’ve been shown further evidence of the cost our nation is paying due to this crisis,” Bar-David said. “Moody’s damning review is a stark wake-up call for those who have so far turned a blind eye to the urgent need for a widespread agreement on reform.”

Israel, despite the cautious policy implemented by its central bank, is now paying a steeper price to service its debt. Bar-David pointed out this increased financial burden, stating, “These are billions that our government is diverting to interest payments instead of allocating them to vital sectors like education, health, and welfare.”

Bar-David warned against the potential inflationary spiral and the devaluation of the Shekel if the government continues to enact laws without widespread agreement. “Persisting with legislation without consensus will only fuel inflation and weaken our currency, making it even more difficult for many Israelis to meet their monthly needs,” he cautioned.

The Histadrut’s chairman appealed directly to the country’s top officials, stating, “I call on the Prime Minister and the Finance Minister to face the reality, act responsibly, and immediately halt the damage inflicted on our economy.”

As he concluded, Bar-David pledged his commitment to safeguarding the nation’s interests. “Under my leadership,” he affirmed, “the Histadrut will continue its endeavours to mediate for the betterment of our economy and the overall welfare of the Israeli people.”

Might interest you as well