Recent evidence and international research have shown that governments are more likely to succeed and maintain the support of the population when consolidations are introduced in the aftermath of an election, and when the party in office has a clear and strong mandate to reform. Therefore, governments with fresh political capital like the current one in Greece have a better chance in succeeding.
With that, we must institutionalize the collaboration and information sharing through a Financial Stability Committee with the participation of the Ministry of Finance, the Bank of Israel, and the Israel Securities Authority. Such a committee will help to significantly reduce the probability of a threat to financial stability in Israel’s economy in the future.