The National Economic Council (, HaMo'etza HaLeumit LeKalkalah) is a staff body within the Prime Minister's Office of Israel. It serves as the chief economic advisory body to the Prime Minister and the government, providing professional counsel, independent analysis, and long-term strategic planning on economic and socioeconomic matters.
Establishment
The Council was established in 2006 on the initiative of Prime Minister Ehud Olmert, with Manuel Trajtenberg appointed as its founding chair. According to the government resolution that established it, the Council's mandate was to "serve as a staff body for the Prime Minister on economic matters, with the aim of assisting in the decision-making process in these areas, based on professional analysis, up-to-date data, and systematic long-term thinking."
The Council began operating under the Prime Minister's Office in 2006, headed by the economic advisor to the Prime Minister.
Mandate and functions
The Council's functions, as established by government resolution, include:
Advising the Prime Minister and the government on economic and social matters; Formulating policy initiatives to encourage economic growth alongside the reduction of socioeconomic disparities; Preparing professional opinions on the proposed state budget and suggesting alternatives as needed; Preparing professional opinions on economic policy proposals on the government's agenda; Serving as the professional focal point for the government's long-term socioeconomic strategy.
The Council operates across a broad range of policy domains, including finance, energy, health, education, housing, taxation, investment, and research and development.
Heads of the Council
Name Term Notes Manuel Trajtenberg 2006–2009 Founder and first chair; resigned in 2009 when Benjamin Netanyahu took office as Prime Minister. Eugene Kandel July 2009 – August 2015 Professor of Economics and Finance, Hebrew University of Jerusalem. Avi Simhon December 2015 – June 2021 Professor of Environmental Economics and Management, Hebrew University of Jerusalem; appointed by Prime Minister Netanyahu. (Vacant) June 2021 – January 2023 Following Simhon's departure, the position remained unfilled for approximately a year and a half; the Council reported directly to the Director-General of the Prime Minister's Office during this period. Avi Simhon (second term) January 2023 – present Reappointed by Prime Minister Netanyahu; government approval granted on 29 January 2023.
State Comptroller reviews
The Office of the State Comptroller of Israel conducted an audit of the Council's work procedures in 2014, publishing its findings in May 2015. A follow-up audit was carried out between February and July 2022 and published in the State Comptroller's annual report of May 2023.
The 2023 report identified several deficiencies:
The Council's status and powers had not been anchored in legislation, as had been required by an earlier government resolution, in the sixteen years since its establishment. The position of Council head remained vacant for approximately a year and a half (mid-2021 to late January 2023). The Council failed to prepare comprehensive opinions on three state budget proposals — for 2015–2016, 2017–2018, and 2021–2022 — as required by its mandate. The share of projects in which the Council served as a central driving force declined from approximately 72% in 2018 to approximately 38% in 2021.
The report recommended that the Prime Minister's Office advance legislation to enshrine the Council's role and powers in law, and that the Council resume regular preparation of budget opinions.
See also Prime Minister's Office (Israel) National Security Council (Israel) National Economic Council (disambiguation)
References
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