Israel Economy Hit as War-Focused Netanyahu Stalls on Budget
- Substantive talks on 2025 fiscal framework have yet to begin
- Central bank governor seeks talks on budget cuts, higher taxes
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With domestic and international attention focused on Israel’s war in Gaza and escalating tensions with Hezbollah, Prime Minister Benjamin Netanyahu’s administration has stalled discussions on next year’s budget — set to be the most challenging and crucial in decades.
Netanyahu and Finance Minister Bezalel Smotrich insist there will be a fiscal framework in place for 2025 but haven’t explained delays in its formulation, leaving markets and investors guessing on how it will be put together at a time that the conflict is causing the budget deficit and debt issuance to soar. Budgeting is usually well underway by this time of year.