PM and finance minister unveil economic rescue plan

The plan focused on two main issues – curbing unemployment and finding a solution to the credit crunch, both in and outside the banking sector
 
Prime Minister Benjamin Netanyahu and Finance Minister Yuval Steinitz presented last week the main points of their new financial / economic rescue plan for the Israeli market.
 
The plan is based on the need to contain the current economic crisis and induce market growth while implementing the market bailout plan.
 
The plan consists of five steps. The first two are improving credit, encouraging exports, preventing layoffs and promoting employment; these Steinitz labeled as "curbing" actions.
 
The final three, which aimed at recreating growth, are structural reforms, tax policies and changes to human resources and physical infrastructure.
 
The plan focused on two main issues – curbing unemployment and finding a solution to the credit crunch, both in and outside the banking sector.
 
The five steps are:
 
A continued reduction of income and corporate taxes through to 2016
Instating negative income tax, meaning people earning below a certain amount are granted government income supplements, instead of paying taxes
A massive extension of state-backed credit lines for the banking sector. The government will also back export and high-tech industries and increase funding to the Small and Medium Enterprise Authority (SMEA)
Instating a reform in the Israel Land Authority in order to reduce land prices and advancing the suggested reforms in Israel Electric Corp. and the Israel Port Authority;
The Israeli port network is an important organ of the economy. Israel is a small country whose foreign trade, some 99%, moves mostly through maritime gateways. The government has to improve port services, shorten vessels' turnaround time and bring Israeli ports to international standards.
Providing increased infrastructural funding, as well as in tourism, transportation and water and power infrastructure