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Reuters
Reuters
Business
Steven Scheer

Another election puts Israel's efforts to reduce cost of living on back burner

FILE PHOTO: A general view shows part of Tel Aviv, Israel June 12, 2022. Picture taken with a drone on June 12, 2022. REUTERS/Ilan Rosenberg

Israel's economy is expected to be resilient during yet another election cycle, but households will suffer as reforms to reduce the cost of living are likely to be shelved and state spending will be scaled back until a 2023 budget is approved.

Prime Minister Naftali Bennett moved this week to dissolve parliament and call Israel's fifth election in less than four years after infighting made the ruling coalition no longer tenable. The poll is expected to take place some time between late September and early November - which means months of policy paralysis.

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