Repeat elections bring ‘real fear of economic paralysis,’ to cost NIS 2b.

The association estimates that repeat elections will cost the economy as much as NIS 2 billion, also highlighting the economic impact resulting from another paid national holiday on Election Day.

May 30, 2019 21:08
1 minute read.
Israel Advanced Technology Industries co-chair Erez Tsur

Israel Advanced Technology Industries co-chair Erez Tsur. (photo credit: PR)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


The unprecedented initiation of repeat elections for the Knesset brings a “real fear of economic paralysis,” according to one of Israel’s key industry leaders.

“Everyone knows that political instability means economic instability,” Erez Tsur, co-chair of Israel Advanced Technology Industries (IATI), told The Jerusalem Post.

“Our colleagues from abroad and foreign investors have expressed deep concern regarding what is happening now. When investors see less stability here, it can prevent critical investments and acquisitions, impacting the industry.”

According to a recent report published by IATI – the leading umbrella organization for hi-tech, life science and other advanced technology industries in Israel – more than 95% of investments in Israeli venture capital funds come from abroad.

“Israeli companies work globally, because the local market is small. Approximately 45% of Israel exports come from hi-tech industries,” said Tsur.

“Look around the world and you can see dozens of articles on the subject of repeat elections. In every place, the elections are represented as problematic.”

Echoing the concerns of organization members, IATI issued an ultimately unsuccessful warning to lawmakers on Monday, calling new elections an “utter waste” of needed finances.

The association estimates that repeat elections will cost the economy as much as NIS 2 billion, also highlighting the economic impact resulting from another paid national holiday on Election Day.

“We ask ourselves if the political disagreements were truly so wide as to be impossible to bridge, to require such use of resources and lead to this instability,” said Tsur.

“Our concern is real, widespread and non-partisan. It’s not related to any political party, but to the instability of the system and the entire nation.”

In addition to the direct and other associated costs of holding elections, Tsur also expressed the business community’s frustration at the continued political paralysis caused by repeat elections.

Tsur cited several legislative proposals currently supported by IATI that are intended to benefit Israeli industry, including matters of cybersecurity and investments in innovation, but which will remain frozen until at least a new government is formed toward the end of the year.

“Legislative proposals which are important for both the hi-tech industry and the country will now be stuck, probably for three-quarters of a year,” Tsur said.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

June 25, 2019
Israeli technology selected to fight severe drought in South Africa


Cookie Settings