
Israel's parliament skipped Bank of Israel-backed deficit measures in its final week, passing haredi coalition deals on the attorney general and military exemptions instead.
The Knesset's last session before dissolution passed coalition deals on the attorney general, media regulation, and retroactive military exemptions for deserters – a core demand of haredi parties. Economic reforms the Bank of Israel had pressed for did not make the agenda.
Central bank officials had urged lawmakers to advance deficit-narrowing measures before the session ended Thursday. None were added. The omission leaves Israel's fiscal path unchanged as the government winds down.
The Bank of Israel warned in its June statement that delaying structural changes would slow deficit reduction. That warning now faces a longer timeline. No date has been set for a new government after the election.
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