Dangerous shoals ahead

01.10.2011                      04.Cheschwan. 5772

Wirtschaft:

Dangerous shoals ahead

Prof. Lucien Bebchuk doesn't mince his words: In contrast to the tycoons' spin, Israel has a grave problem with economic concentration that constitutes a real danger to economic stability.

The members of the Committee on Enhancing Competitiveness had no choice; and neither do the prime minister, the finance minister and the members of various Knesset committees. They must, willy-nilly, crack down. They must find ways to reduce economic concentration – the domination of the economy by a handful of powerful business entities.
The committee's draft report, which the Finance Ministry published right before Rosh Hashanah, seems divided into two parts. The first part lists the findings, which are grave and extreme. It discusses the feebleness of competition, the peril to the public's savings, the danger to financial stability in Israel. This part was written by economists working at the Finance Ministry, the Bank of Israel, the Justice Ministry, the Antitrust Authority and the Israel Securities Authority….