Israeli Central Bank Chief Urges Swift Approval of 2025 Budget Amidst War

Amir Yaron, the chief of Israel's central bank, has urged Prime Minister Benjamin Netanyahu to expedite the debate and approval of the 2025 state budget. Yaron stresses that maintaining fiscal responsibility is crucial during the ongoing war. Speculations suggest delays might lead to new elections.

Israeli central bank chief Amir Yaron has called on Prime Minister Benjamin Netanyahu to speed up the process of debating and approving the 2025 state budget, stressing that financial markets are seeking responsible fiscal policy even during a time of war.

In a letter to Netanyahu seen by Reuters on Tuesday, Yaron emphasized that the security situation of more than 10 months of war requires the government to maintain 2024 budget frameworks and promote a 2025 budget. These steps are "critical to preserving the stability of the economy and strengthening the reputation of the Israeli economy," Yaron wrote.

Speculation in Israeli media suggests Netanyahu may be delaying the budget to ultimately trigger new elections, as failing to pass the budget by March 31, 2025, would automatically lead to elections. Netanyahu's office declined to comment.

(With inputs from agencies.)