A majority in the Knesset Economic Affairs Committee voted on Monday, December 14, against activating Article 52 – the contentious legal clause that would allow neo-liberal Prime Minister Benjamin Netanyahu to move forward to privatize the country’s natural gas reserves. Although the committee’s recommendations are not legally binding, and as economy minister, Netanyahu can choose to invoke the clause regardless, seven committee members voted against recommending its use while six voted in favor. The vote occurred in the 11th and final session in a series of discussions that have been a prerequisite toward implementing the long-disputed natural gas deal.
PM Netanyahu and American Nobel Energy CEO Charles Davidson (Photo: GPO)
As acting economy minister, PM Netanyahu’s invocating of Article 52 of the 1988 Restrictive Trade Practices Law would allow him to circumvent the Antitrust Authority’s objections. While the Article 52 has never been implemented in Israel’s history, an economy minister can do so by citing national security or foreign policy interests. After former economy minister Arye Deri resigned from his position last month, it became Netanyahu’s duty in that role to consult with the Economic Affairs Committee prior to activating Article 52. The need to employ Article 52 arose due to the refusal of former antitrust commissioner David Gilo to support the gas outline.
Hadash MK Dov Khenin (Joint List) spoke out against using Article 52, explaining that over the course of the discussions he remained unconvinced that activating the clause was the proper move. “Netanyahu is protecting the interests of capitalists, those he is serving when he promotes this unfair and inadequate gas outline, which will not benefit the citizens of Israel and the Israeli economy,” said Khenin.
