In this context we must point out that for two years we have been stating in the Bank of Israel Annual Report that from 2013 the various fiscal rules are inconsistent with each other, as the planned tax reductions are not consistent with the planned path of an increase in expenditure and reduction in the deficit – growth of close to 5 percent will be needed to avoid exceeding the target deficit.
The Committee for Examining and Encouraging Competition is also currently active and is expected to publish its recommendations shortly. This too is a serious and professional committee, and Karnit Flug represents the Bank of Israel on it, together with the Supervisor of Banks, David Zaken.