But Israel cannot do this, just as it couldn't during the recession of 2002. Why? Because when debt is so high, as ours is, then increasing the budget deficit increases debt by such a pace and to such a level that the markets will regard it as dangerous.
This situation could lead to a financial crisis, while in the midst of a recession, as in 2003. Secondly, a high debt-to-GDP ratio exposes the economy to the effects of possible external shocks. Lowering the debt burden will improve the economy's immunity and this should be reflected in an improved credit rating for Israel.