The Is­raeli ex­am­ple

Kathimerini English - - Front Page - BY PASCHOS MANDRAVELIS

And while Greece strug­gles with the in­ac­tion of our no-good­nik politi­cians and the ide­o­log­i­cal fix­a­tions of the left, In­tel ac­quired, for $15 bil­lion, an Is­raeli com­pany that makes driver­less cars, called Mo­bil­eye. What’s $15 bil­lion? Just over dou­ble what the Greek state needs to stave off bank­ruptcy in July. That’s why Fi­nance Min­is­ter Eu­clid Tsakalo­tos has been wear­ing down the soles of his shoes, com­ing and go­ing from the Hil­ton Ho­tel, where the re­view team is stay­ing. The Is­raeli econ­omy went through an eval­u­a­tion of its own long be­fore Greece and did so with­out any­one ask­ing for it. Af­ter a ter­ri­ble in­fla­tion cri­sis (reach­ing 450 per­cent in 1984), the Knes­set de­cided to lib­er­al­ize the mar­ket and pro­fes­sions, and also to dras­ti­cally down­size the state. Pub­lic ex­pen­di­ture dropped from 60 per­cent of GDP in 1986 to be­low 40 per­cent in 2015. This was achieved at the same time as it in­creased mea­sures to pro­tect the most vul­ner­a­ble mem­bers of society. Dur­ing the pe­riod of cut­ting back state ex­penses, Is­rael set up the na­tional health sys­tem, spent more money on curb­ing un­em­ploy­ment and pen­sion­ers, and in­vested in a guar­an­teed min­i­mum wage. Pub­lic debt went from 165 per­cent of GDP in 1986 to 62.4 per­cent to­day. Un­for­tu­nately, we can­not ex­pect a $15 bil­lion

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