Last week, Yuval Steinitz was appointed as Finance Minister in Israel’s new cabinet. If the tenure of many of his predecessors is an indication, he is liable to hold the post for less than 2 years.

What he can achieve in such a small period of time? Perhaps it is more relevant to ask what are his qualifications that will endear him to the financial markets, other than being a long-time Bibi Netanyahu groupie.

The political views of Steinitz have moved to the right of the diplomatic map. He is a renowned expert in philosophy. He is savvy in political manipulations and has chaired committees in the Kenesset. And his familiarity with economics may not take him past a 101 beginners course.

What does this amount to?

In my view, this background is a great platform for success. It shows that Steinitz comes in with few preconceived theorems. He has the ability to listen and then to act. He understands how to operate the coalition politics of the legislature.

It is to be hoped that Steinitz will surround himself with capable advisers, and who are trusted by the wider capital markets. This rules out “jobs for the boys”, because the markets know how to belt such characters.

A colleague of mine has met Steinitz and gave him the thumbs up. And I recall that three of the most successful finance ministers over the past 25 years were also economic dumbskulls. Yet all of them – Peres, Nissim and Bar-On came through with high marks, each using similar skills outlined above.

Netanyahu has made it clear that he will be keeping a close watch on the finance portfolio. He has deep experience in that position. Because of him, growth regularly topped 4% per annum.

But this is also my concern. Israel’s economic problems in 2009 are not the same as when Netanyahu began at the ministry nearly 8 years previously. The approach must be different. Specifically, Steinitz cannot afford to give in to pressure groups like the Histadrut as Netanyahu used to do or to the banking interests.

Steinitz has an opportunity to lead Israel’s finances to a strong future. He will need to use his own talents to ensure this is achieved.