, and tax incentives on investment in israel. 3. i would to stress the measures already approved directed at dealing with the financial side – steps intended to increase the sources of bank and nonbank credit for the business sector, including small and medium - sized businesses, and steps to stimulate foreign investment in israel's capital market. on sunday 14 december the government made a decision to support the proposal put forward by the joint work teams of the ministry of finance, the bank of israel and the prime minister's office, regarding a " safety net " for savers close to retirement age. the bank is in favor of the proposal and its immediate implementation. however, despite the measures approved to handle the expected economic slowdown, we must make even greater efforts to deal with the crisis. unfortunately, it took us, the state of israel, about three months from the sharp deterioration in the global financial crisis, when lehman brothers collapsed, to formulate the actions to be taken and their approval by the government and the knesset. and they have still not been implemented. thus, valuable time that could have been used to the benefit of the economy has been wasted. it is of particular importance to proceed with the implementation of the steps on the financial side. i hope there will be no further delays and that we can start making progress. this is essential to avoid eroding the economic achievements of the last few years and to enable us successfully to meet the challenges facing us. hence, following the approval of the ministry of finance program last monday ( 15 december ), we must immediately enter the implementation stage. the financial crisis is here, and is not waiting for us. particularly at this time, in the approach to the elections to the knesset, we must deal with the challenges now confronting us in accordance with the guidelines we have followed hitherto – a credible macroeconomic policy, effective cooperation, focusing on the target, and determination. this we must do, to ensure that israel's economy comes through the current crisis in a good condition.

committee. to the extent that we will be able to do more in increasing the efficiency of the tax exemption system and enhancing tax collection, we will be able to increase overall tax revenues without increasing tax rates. to summarize, the economy faces the challenge of supporting inclusive growth, which integrates population sectors with low participation rates, while increasing their human capital and earning capacity and increasing productivity. to that end, we must formulate a focused strategic plan, which will include integrating population sectors into employment ( ultraorthodox, arabs, older workers ), dealing with increasing human capital, dealing with the factors leading to slow growth of productivity ( infrastructure, business environment, bis central bankers ’ speeches competitiveness ), preparing public services systems ( healthcare, nursing, etc. ), and reducing the unreported economy by collaboration between all entities. the data i presented in the beginning of my remarks showed that an “ automatic pilot ” policy will not lead us to reducing the gaps with other advanced economies ; however, there is some room for optimism, as an effective and well thought - out policy can definitely improve our situation over the long term. bis central bankers ’ speeches