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Knesset Sets Special Session to Deal with Economic Crisis

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The Knesset will interrupt its summer recess Monday for a special session to deal with a series of measures aimed at assing the growing economic crisis.

Runaway inflation, currently at an annual rate of 350-400 percent, the rush to buy black market Dollars, a depleted Treasury, a widening balance of payments gap, dwindling foreign currency reserves and widespread labor unrest in the public sector pose urgent problems that must be dealt with promptly and decisively.

There is strong pressure on Finance Minister Yigal Cohen-Orgad to “do something” about the economy and pressure on the Knesset, most of whose members are standing for re-election. But with election day only four weeks away, the ability to take measures that might anger the public is complicated.

One of the bills on the Knesset agenda for next Monday would protect the assets of the public in a way that some members of the public may not favor. The bill would curb the trend to withdraw bank savings to purchase Dollars on the black market or to stock up on consumer goods before rising prices put them out of reach.

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