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The Jerusalem Post

Israel's Knesset committee approves EU import reform

 
 Prime Minister Netanyahu while Israel committee approves EU import reform (photo credit: KOBI GIDON/ GOVERNMENT PRESS OFFICE)
Prime Minister Netanyahu while Israel committee approves EU import reform
(photo credit: KOBI GIDON/ GOVERNMENT PRESS OFFICE)

This move is expected to dramatically reduce the cost of living in Israel and create a structural change in the Israeli market.

The ministerial Cost of Living Committee, chaired by Economy Minister Nir Barkat, approved a new reform that would allow Israel to import any product marketed in the European Union on Thursday.

This move is expected to dramatically reduce the cost of living in Israel and create a structural change in the Israeli market.

According to an optimistic Barkat, "This is a historic day. For decades, we have been trying to solve the problem of the high cost of living in Israel, and for the first time, we have a comprehensive solution at hand."

Following the committee's approval, the memorandum of the law will be published next week, and its legislative process will begin in the Knesset.

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Its legislation is expected to be completed by the end of April 2024.

 Israelis protest against the soaring housing prices in Tel Aviv and cost of living, on July 2, 2022. (credit: TOMER NEUBERG/FLASH90)
Israelis protest against the soaring housing prices in Tel Aviv and cost of living, on July 2, 2022. (credit: TOMER NEUBERG/FLASH90)

Prime Minister Benjamin Netanyahu commented on the decision of the committee, saying, "What is good for Europe is good for Israel. This week, we will bring a memorandum of law for rapid legislation to the Knesset. This will greatly reduce the prices of cosmetics and food in the State of Israel."

The issue of the high cost of living in Israel 

Israel is known to be faced with the issue of the high cost of living.

In a poll conducted in April 2023 using a sample of the Israeli adult population, 60% of the respondents claimed that the government is mainly responsible for the high cost of living, placing an emphasis on the increase in food prices.


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In January, State Comptroller Matanyahu Englman disclosed a report addressing the cost of living in Israel.  This report revealed that food prices in Israel are 51% higher compared to European Union countries and 37% higher than the OECD average.

"The import reform will open the market and lower prices. The war stopped the promotion of the import reform. In good time, it was now renewed and passed by the committee of ministers. We intend to enact the reform in this session. Cut bureaucracy, cut regulation, remove import restrictions, and create a free import highway," Finance Minister Bezalel Smotrich stated.

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"Today, we took an important step in the right direction," Smotrich added. 

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