Holding a press conference ahead of today’s planned cabinet vote on the 2026 state budget, Finance Minister Bezalel Smotrich takes aim at big banks and chains, pledging to lower the cost of living and vowing to oppose the budget unless his proposed reforms are included.
Israelis have been “winning on the economic front,” he claims, asserting that the government had “managed the situation responsibly” during the past two years of war, providing solutions for the troops, displaced people and small and medium-sized businesses.
He added, “While you, the citizens of Israel, mobilized, the banks stood on the sidelines, took advantage of the high interest rates, and raked in enormous, unimaginable profits at your expense.”
“The same goes for the monopolies. They raised prices again and again, simply exploiting the war, and pocketed huge profits at our expense,” Smotrich continues, presumably referring to large chains in the retail and food sectors.
He pledges, “We are finally going to deal with them” in the 2026 budget. “We are now going to make sure they pay, and you receive,” he says.
Smotrich accuses the banks of “extortion and exploitation” and promises to open the banking market to competition by allowing additional small banks to enter the market, which “will allow every citizen of Israel to pay less interest on credit and receive more on their deposits.”
Touting his proposed dairy reform, Smotrich also pledges to lower the cost of living for clothing, food and other basic goods while also lowering taxes so that “those who go to work and contribute to the economy will keep more money in their pockets.”
“We want you to be able to buy more, and for less. If the retail monopolies do not drastically lower prices, you will order the clothes you like at reasonable prices from elsewhere. We are breaking those who are trying to break you,” he says in reference to his recent announcement that he will raise the exemption on value added tax on personal imports from $75 to $150.
“These reforms are the core of the upcoming budget. Without them, there will be no state budget,” he says.
Smotrich’s plan to cut taxes appears to clash with Prime Minister Benjamin Netanyahu’s call, to which Smotrich has previously objected, to massively increase defense spending by hundreds of billions of shekels in the coming years.