MK Maklev attacks officials: 'You are presenting a distorted picture of Haredim'

The OECD Secretary-General, Mathias Cormann, presented the biennial report on Israel’s economy today (Wednesday) to the Socio-Economic Cabinet, chaired by Finance Minister Bezalel Smotrich. Afterward, he sat down for a discussion with Finance Ministry officials and cabinet members, during which Deputy Minister Uri Maklev sharply criticized the officials.

During the meeting, attended by Cormann and senior organization officials, Deputy Minister Uri Maklev attacked the Finance Ministry officials, stating that they were presenting a false picture to the organization’s leaders. This came after years of the Finance Ministry preventing meetings between senior haredi representatives and OECD officials.

After Cormann spoke about reducing disparities and raised the issue of the haredi public, Maklev responded, saying that "gap reduction does exist within the Arab community, but not toward the haredi community."

"This is, among other things," Maklev explained, "due to a misrepresentation conveyed to you by the Finance Ministry, a misrepresentation driven by ideology rather than professional economic facts."

According to him, "There are five-year plans for Arabs, Druze, and Bedouins, but not for haredim. There are enormous gaps in per capita investment; there’s no response to educational infrastructure needs; all employment incentives for women have been halted because they supposedly met the targets, yet haredi women still earn 60% less. The officials openly declare they don’t want haredi women to earn more, because then the husband will continue studying, and the son won’t study core subjects (meaning mathematics and English). This is ideological coercion disguised as economics."

Deputy Minister Maklev emphasized that "in every other sector, the state encourages, incentivizes, and supports. With us, there are only sanctions, decrees, and harassment. Thousands of haredi women complete their studies but struggle to integrate into the workforce, not because there’s no demand, but because they are being targeted. Even daycare subsidies, one of the most important factors enabling women to enter the workforce, were stopped, supposedly for legal reasons, instead of fighting to continue the support."

Maklev also raised the issue of baalei teshuva, saying: "A person who studied core subjects (such as mathematics), acquired a profession, and adopted a haredi lifestyle is completely excluded from benefits and programs, just because he ‘became haredi.’ This is discriminatory policy that harms the hardest-working people in our community."

Finance Minister Bezalel Smotrich and other ministers agreed with him, and the OECD Secretary-General and organization leaders were surprised to hear a completely different perspective from what had been presented to them until now.

Summarizing the meeting, Minister Smotrich clarified: "No one will prevent the haredi public from presenting its position anymore. The haredi authority will present full and reliable data to international organizations, as it deserves to."

As reported earlier today, the Secretary-General’s report noted the resilience of the Israeli economy, which demonstrated durability against the shocks of the October 7 terror attack and the subsequent war, thanks to stable fiscal starting conditions, responsible monetary management, and high employment rates.

Looking ahead, OECD economists estimate that growth is expected to rise to 3.4% in 2025 and 5.5% in 2026. The report states that fiscal policy will need to account for pressures due to increased defense spending, the need to address infrastructure gaps, and preparations for future demographic growth. The organization emphasizes the need to advance structural reforms while promoting long-term growth, including liberalization of the product and service markets.

The report extensively addresses ways to tackle Israel’s high cost of living, primarily focusing on trade barriers, burdensome regulation, and insufficient competitive pressure, which have kept price levels high compared to OECD countries across various sectors. OECD economists positively note the enactment of the import reform "What’s Good for Europe is Good for Israel," stating that its full implementation, while reducing existing exemptions, could enhance competition and help lower price levels.

The report includes recommendations regarding leveraging the advantages of artificial intelligence (AI) by expanding higher education offerings, particularly at advanced degree levels, making employment models in academia more flexible in these fields, and maintaining a flexible regulatory approach to AI. The review also features a separate chapter discussing efforts to reduce emissions and prepare for climate change.

Kikar HaShabbat contributed to this article.