National Economic Council (Israel)

National Economic Council (Israel)
Name	National Economic Council (Israel)
Native name	המועצה הלאומית לכלכלה
Formed	2013
Jurisdiction	State of Israel
Headquarters	Jerusalem
Chief1 name	(see section)

National Economic Council (Israel) The National Economic Council (Israel) is a policy advisory body established to coordinate high-level economic strategy for the State of Israel. It was created to provide integrated advice on macroeconomic planning, structural reform, and national competitiveness, interfacing with executive offices and statutory ministries. The council operates at the intersection of fiscal policy, industrial strategy, and regulatory reform, advising prime ministers and cabinet ministers on long-range economic choices.

History

The council was formed amid debates following the 2011 Israeli social justice protests and policy responses such as the Trajtenberg Committee and the 2013 Israeli legislative election. Early discussions drew on analyses from institutions like the Bank of Israel, the Ministry of Finance (Israel), and the Taub Center for Social Policy Studies in Israel; antecedents included advisory arrangements under the Prime Minister of Israel and ad hoc committees during the 2008 global financial crisis and the European sovereign debt crisis. Its establishment in 2013 reflected comparative models such as the United States National Economic Council, the United Kingdom National Economic Council (United Kingdom), and the Australian Treasury's policy units. Over successive administrations—during premierships of figures linked to coalitions formed after the 2013 Israeli legislative election and later elections—the council’s remit shifted with input from advisors connected to the Likud and Blue and White blocs, influencing decisions on privatization debates, deregulatory drives, and housing policy reforms rooted in recommendations from the Trajtenberg Committee and reports by the OECD.

Organization and Structure

The council is structured as an advisory secretariat located near offices occupied by the Prime Minister of Israel and the Prime Minister's Office (Israel), staffed by economists, legal advisers, and policy analysts drawn from entities such as the Ministry of Finance (Israel), the Bank of Israel, and academic centers like the Hebrew University of Jerusalem and the Tel Aviv University. Its organizational chart typically includes a director, deputy directors, sectoral leads for areas such as energy, telecommunications, and housing, and liaison officers to the Knesset committees. The council coordinates interagency working groups with participation from the Ministry of Economy and Industry (Israel), the Ministry of Environmental Protection (Israel), the Israel Electric Corporation, and statutory regulators including the Israel Securities Authority and the Communications Ministry (Israel). Appointment processes for senior staff have involved political appointments and civil servants seconded from institutions such as the National Insurance Institute (Israel).

Functions and Responsibilities

The council’s responsibilities encompass strategic economic planning, long-term competitiveness strategies, cost-of-living analyses, and crisis response planning. It prepares advisory memoranda on macroeconomic scenarios evaluated against data from the Bank of Israel's reports, fiscal projections from the Ministry of Finance (Israel), and labor-market studies produced by the Central Bureau of Statistics (Israel). The council drafts policy options on industrial competitiveness and innovation in coordination with the Israel Innovation Authority and proposes regulatory reform targeting sectors overseen by the Antitrust Authority (Israel) and the Israel Electric Corporation. During emergencies, the council has served as a coordination node linking the Prime Minister's Office (Israel) with the Ministry of Health (Israel), the Ministry of Defense (Israel), and international partners such as the OECD.

Policy Influence and Major Initiatives

Major initiatives influenced by the council include housing affordability measures tied to municipal planning reforms involving the Ministry of Interior (Israel), energy-market liberalization efforts connected to disputes over the Leviathan gas field and the Israel Natural Gas Lines Company, and competition policy changes responding to high-profile consumer protests. The council contributed to frameworks for industrial incentives that intersected with the Israel Innovation Authority and export strategies for sectors exporting through ports administered by the Israel Ports Company Ltd.. It has drafted proposals on taxation reform echoing debates in the Knesset and worked on labor-market reform linked to proposals from trade unions like the Histadrut and employer associations such as the Israel Manufacturers Association.

Relationship with Government and Other Agencies

The council functions as a central advisory entity reporting to the Prime Minister of Israel and coordinating with the Cabinet of Israel, while maintaining formal and informal links with the Ministry of Finance (Israel), the Bank of Israel, and parliamentary Knesset committees. It convenes cross-ministry task forces with the Ministry of Transport and Road Safety (Israel), the Ministry of Environmental Protection (Israel), and regulatory bodies including the Israel Securities Authority to align strategic priorities. At times the council’s role has overlapped with that of the National Economic Council (United States) in comparative policy dialogues and with academic centers like the Taub Center for Social Policy Studies in Israel for empirical evaluations.

Criticism and Controversies

Critics have argued that the council concentrates advisory power within the Prime Minister's Office, raising concerns similar to critiques of centralized policy units in other countries, including debates in the Knesset over executive reach. Controversies have arisen around perceived partiality in appointments linked to party factions such as Likud and coalition negotiations, disputes over proposed market liberalization affecting entities like the Israel Electric Corporation, and transparency questions raised by civil-society groups and think tanks including the Israel Democracy Institute. High-profile policy reversals on privatization and housing measures prompted scrutiny from opposition parties and members of the Knesset’s Finance Committee.

Notable Directors and Personnel

Directors and senior staff have included economists, former ministry officials, and advisers with ties to institutions such as the Bank of Israel, the Ministry of Finance (Israel), the Hebrew University of Jerusalem, and international organizations like the OECD. Notable figures who have led or influenced the council’s work have previously served in roles connected to the Prime Minister's Office (Israel), the Knesset’s legislative apparatus, or academic chairs at Tel Aviv University and the Hebrew University of Jerusalem.

Category:Government of Israel Category:Economic policy