The OECD has warned Israel for months that Jerusalem’s budget did not add up. The newspapers of been full of similar articles. Finally last week, the Israeli treasury moved to plug a 14 billion shekel – say US$3.5 billion – gap in the finances. Loads of new or higher taxes. And as is common in such situations, the lower and middle classes will take the brunt.

Well, the recognition of defeat will be welcomed by the financial markets. However, there is general acceptance that there is more to come.

What concerns me, and I have stated this before, is that these measures were clearly issued in haste. For all the pessimistic forecasts, those in (so-called?) control did not listen. For example, it is less than a month ago that the Finance Ministry announced that certain import tariffs will be reduced over the next three years. That same decision was revoked last week.

Israel is not as badly off as other countries. It is no Greece nor Spain. Its growth is far superior to that of France and the UK. That said, eight million citizens deserve a better performance from their fiscal planners than served up to date in 2012.

It is with some irony that the one bright spot has come from the roads. Israel’s transportation system still leaves a lot to be desired. Nevertheless, the installation of new road safty cameras have created of new profit centre, as the fines have poured in. This is one step to be welcomed…..until I get caught(?).