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Ministers Committee Approves Law Bill for the Promotion of Competition and Reduction of Centralization

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Thursday, June 21st, 2012

The Minister of Finance: This is a historical move, a comprehensive reform in the structure of the Israeli economy as a whole

After a stormy debate, the Ministerial Committee on Legislative Affairs approved the Centralization law bill by a majority of 7 in favor versus 3 against and 2 abstentions.

The revolutionary bill will lead to a reduction in centralization in the Israeli economy and to an increase in competition – which will work in favor of economic development and Israel and lead to lower prices and costs for its citizens.

According to the decision; within 6 years from today, there will be no more economic pyramids in the economy, a person or company will not be allowed to own a bank or financial company together with a significant real entity, considerations for preventing centralization and increasing competition will be taken into account in the privatization of government companies or State assets, and corporate governance will be improved in order to prevent and minimize conflicts of interests.

Minister of Finance Dr. Yuval Steinitz: “This is a historical move, a comprehensive reform in the structure of the Israeli economy as a whole. With a blend of intellectual daring, on the one hand, and caution that has led to the hedging of concerns on the other, we are achieving a historical reform in the history of Israel today.”

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