Governor of the Bank of Israel’s Term Extension in Doubt
The recent discussion in the Knesset’s Constitution Committee revealed that the name of the incumbent Bank of Israel governor, Prof. Amir Yaron, was not found on the list of senior appointments set to be extended. This is contrary to the agreement made to automatically extend all senior appointments, including that of the Bank of Israel governor.
Following this revelation, legal officials stated that they had contacted the Prime Minister’s Office in recent weeks, only to be told that there were no “appeals” to deal with the extension of the governor’s term of office. As of now, his term has not been extended. However, following an appeal by News 12 to the Bank of Israel and the Prime Minister’s Office, it was revealed that Prime Minister Netanyahu intends to ask the governor to extend his term soon.
The Bank of Israel responded by stating that according to the law, the governor can be appointed for one additional term of five years based on the government’s recommendation to the president. The Business Forum, made up of about 200 heads of the largest companies in the economy, also called on Netanyahu and the government ministers not to be satisfied with just extending the governor’s term, but to appoint him for another full term in light of the critical and uncertain period for the Israeli economy.
The Forum emphasized the challenging economic situation facing Israel and the need for the governor’s proactive and professional leadership. They warned that failure to make a decision on another term for the governor would lead to immediate damage to the economy and severe consequences for businesses and households. The responsibility for these dire consequences would lie with the Prime Minister and the government.
The uncertainty surrounding the extension of the Bank of Israel governor’s term has raised concerns about the stability of the Israeli economy. As the situation unfolds, the government is under pressure to address the issue and make a decision that will safeguard the country’s economic future.