The expected right-wing government headed by Prime Minister Binyamin Netanyahu “would likely be inherently more stable than a coalition led by the centre-left Zionist Union, which would struggle to put together a majority,” Moody’s Investors Service analyst Kristin Lindow wrote Monday.
The world-wide credit rating service said the victory by the right-ring in the elections last week is good for Israel’s credit rating because of expected “economic policy cohesion.”
“We expect the government’s fiscal rules to contain spending growth and keep credit metrics for Israel on their well-established improving trend, a credit positive,” Lindow and co-author Pamela Reyes Herrera wrote.
He added that the coalition that Netanyahu is putting together will last longer than the previous and ill-conceived government.
The new administration “would likely be inherently more stable than a coalition led by the centre-left Zionist Union, which would struggle to put together a majority,” Lindow said.
The Moody’s report added, “The economy’s recovery from last year’s Gaza conflict should lead to rapid consensus over the budget allocations.”
A government source told “the Globes business newspaper that the announcement by Moody’s “is a positive announcement. It can almost be called a ‘God speed’ for Netanyahu.”
This is bad news for the “anyone but Prime Minister Binyamin Netanyahu” campaigners, whose spokesmen, such as The New York Times and the Obama administration, have drowned out the right-wing victory with twisted analyses to soothe their wounds while babbling that Israel now will be worse off than ever.
The irony of Israel’s Labor party, which now calls itself the “Zionist Union” following the merger with Tzipi Livni’s faction, is that unlike its counterparts in the rest of the world, Labor is anything but socialist.
Israel’s Labor party always has been run by the old-guard elitists, except for a short interval when Amir Peretz, long-time leader of the Histadrut national labor party, carried the ball and fumbled it forever.
Israel’s tycoons, which control most of the manufacturing capacity in the country, always have been behind Labor and against reforms to create a free market.