The cabinet on Sunday unanimously approved Karnit Flug’s nomination to become
Bank of Israel Governor, quickly advancing the process of replacing Stanley
Fischer after months of delay.
“Karnit Flug has the appropriate
background and experience and she has fulfilled her position [as acting
governor] in recent months very well,” Prime Minister Binyamin Netanyahu said at
the meeting. “In addition to the fact that we are successfully navigating the
Israeli economy in the face of the global crisis, Israel’s economic leadership
must continue to advance growth and employment, increase exports and lower
Following the cabinet’s approval, Flug met with Finance
Minister Yair Lapid, who cited housing and the cost of living as the central
Since Fischer stepped down in June, Netanyahu and Lapid
nominated two other candidates for the position, each of whom withdrew his
nomination over alleged scandals.
Flug, Fischer’s deputy and favorite for
the position, had been overlooked both times, but snagged the nomination last
By Wednesday last week, she gained the approval of the advisory
committee on senior appointments and positions chaired by retired Supreme Court
justice Jacob Turkel.
“The Israeli economy faces many challenges and its
ability to weather them depends, among other things, on productive, joint
cooperation between the Finance Ministry and the Bank of Israel,” Flug
emphasized on Sunday.
President Shimon Peres must give his seal of
approval before Flug, who has been acting as governor since Fischer’s departure,
can be officially sworn in. He has voiced enthusiasm for Flug, and is expected
to sign his approval this week.