Israel unveiled NIS21.7 bn economic stimulus package

Histadrut claims the plan lacks a safety net for workers reaching retirement and measures to avert layoffs
 
Israeli Finance Minister Roni Bar-On unveiled on Wednesday a multi-billion dollar economic stimulus package aimed at reducing the impact on Israel of the global financial crisis.
 
After presenting his plan to a restricted social economic cabinet meeting that included caretaker Prime Minister Ehud Olmert and central bank chief, Stanley Fischer, the minister said: "We will invest NIS 21.7 bn ($5.5 bn) in 2009, or 41% more than the previous year, to promote the creation of thousands of jobs”.
 
Bar-On said the plan calls for government investments in infrastructure, public transport, roads, construction, energy and tourism.
 
The state also should considerably increase financing of research and credits for small businesses. Bar-On also stressed the Bank of Israel should lower its key interest rate.
 
The Histadrut Labor Federation and manufacturers expressed disappointment with the Treasury's economic stimulus plan and indicated they were working on an alternative plan to provide a pension safety net. In addition, the Histadrut is preparing to call fora general strike in the public sector.
 
Histadrut chairman, Ofer Eini, said the Treasury's NIS 21.7 billion economic plan lacks two crucial components: a safety net for employees who are reaching retirement age and are seeing their savings disappear, and measures to avert layoffs.