Cabinet Approves Dr. Klein as Bank of Israel Governer
(Communicated by Prime Minister’s Media Advisor)
Jerusalem, January 16, 2000

The cabinet today (Sunday) 16.1.2000, decided to recommend to the President to appoint Dr. David Klein as Bank of Israel Governor by a 10-7 vote, with 5 abstentions.

Prime Minister Ehud Barak said at the end of the cabinet meeting that there had been a legitimate and democratic debate between differing economic perspectives that however had a common objective. He said that he is convinced that the ministers want to encourage growth and investment and create jobs after several very difficult years for the Israeli economy.

The Prime Minister said his government has shown great social sensitivity in the five months of its term, expressed by a long series of social decisions such as the Public Housing Law, the Veterans Law, student loans, a significant increase to the health and welfare budgets, today’s approval of additions to the health basket and solving the problem of the disabled.

Prime Minister Barak noted that the government, as sovereign, is responsible for economic and social policy, and can be proud of its achievements so far. It is the government that determines inflation targets and the Bank of Israel Governor who implements them.