Import reform passed in Knesset: 'What is good for Europe is good for Israel'

The reform aims to combat the high cost of living in Israel

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The Israeli Knesset passed a reform aimed at addressing the high cost of living in Israel on Monday. The reform includes a set of four laws designed to align with European Union standards for consumer goods and to reduce the existing bureaucracy that complicates the import of goods into Israel.

The new legislation, dubbed "What is good for Europe is good for Israel,” will allow for the import of any product approved in Europe into Israel. It is expected to facilitate the arrival of a range of new consumer goods, including food products, toiletries, and electronic appliances, which are often sold at lower prices in Europe.

Israel's Ministry of Finance stated the reform will increase both the number of products and the range of brand suppliers, which is expected to boost competition. in addition, it is anticipated to reduce the nearly NIS 10,000 (about $2,600) that each household spends on products annually.

“The Finance Ministry is continuing to advance structural reforms to increase competition and lower cost of living,” said Yoav Gradus, director-general of the Budget Department.

“The ‘What is good for Europe is good for Israel’ reform is expected to remove trade barriers that restricted import to Israel and led to high prices; and accordingly, to increase the variety of products available to consumers along with lowering the cost of living,” he added.

In an April 2023 poll, 60% of Israelis surveyed blamed the Israeli government for the high cost of living, with a particularly the increase in the cost of food.

According to a January report released by State Comptroller Matanyahu Englman, food prices in Israel are 51% higher than EU countries and 37% higher than the OECD average.

In its August 2023 report on the cost of living among member countries, the Organization for Economic Co-operation and Development (OECD) found that price levels in Israel had soared to 38% above the average across OECD nations. The difference was even greater (exceeding 60% or more) when compared to popular Israeli tourist destinations like Greece, Turkey, and Portugal,

The Israeli government has been blamed for failing to address the high costs of living in Israel, which have only spiked in recent years.

In April 2023, six months before the Gaza War began, veteran Likud party lawmaker David Bitan, who heads the Knesset Economic Committee, said that the government was doing nothing to address the issue and that no Likud Members of Knesset were interested in the steep rise in prices for basic goods.

In May, the backlash against the government over the rising cost of living prompted Israeli Prime Minister Benjamin Netanyahu to establish a new ministerial committee to address the issue.

As far back as 2011, a significant increase in the price of cottage cheese in Israel sparked a consumer boycott of the product. The boycott was part of a broader wave of protests over the rising cost of living, which also highlighted issues such as the lack of affordable housing. The protests grew into a larger movement addressing various economic and social concerns.