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August 8, 2011

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Israelis respond to unrest over prices

ISRAEL yesterday formed a panel of government ministers, including some of the country's leading economic experts, to draw up a plan to reduce the cost of living, part of new efforts to defuse demonstrations over prices that drew more than a quarter of a million people on to the streets the previous night.

The announcement comes after three weeks of protests sparked by complaints over housing costs. Since then, the protests have gained new momentum as Israelis grow increasingly frustrated with their struggle to make ends meet despite economic growth that is outpacing other developed nations.

Saturday's turnout of more than 250,000 people in public squares presented Israel's most stable government in years with a chorus of discontent it could not ignore.

The panel will present its recommendations within a month, according to Gidi Schmerling, a spokesman for Prime Minister Benjamin Netanyahu.

Schmerling said Netanyahu "has defined a goal, to correct social wrongs, and he will work towards that goal in a genuine and intensive manner."

The protest organizers - a loosely organized group of young Israelis stunned by the mass response to their complaints - have called for a million-person march in 50 cities across the country next month.

While they have sought to steer clear of appearing political in their calls for reform, the mass rallies have given voice to the growing wealth disparity in the country and what critics contend is an inequitable distribution of government resources.

After weeks of vague calls for change, the protest leaders published a list of demands last week, including the construction of affordable housing and a reduction of the 16 percent sales tax.



 

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