Israel PM creates task force after prices protests

Israeli Prime Minister Benjamin Netanyahu on Sunday ordered the creation of a task force charged with finding ways to alleviate the cost of living, a day after huge nationwide protests. His announcement came as the director general of the finance ministry resigned, citing a "fundamental difference of opinion" with his superiors, the Israeli news site Ynet reported. At least 100,000 people took to the streets in cities across Israel on Saturday night in the latest show of force by a protest movement that has exposed deep anger about the cost of living and income disparity. At the start of his weekly cabinet meeting, Netanyahu said he would name "a team of ministers who will set up a round-table discussion with representatives of various sectors to allow them to share their concerns." He said the team would be charged with creating a "practical plan" to be presented to the government for approval and implementation. Netanyahu said he was "aware of the genuine hardship" faced by many in Israeli society, but warned against "irresponsible, hasty and populist steps that are liable to cause the country to deteriorate into the situation of certain European countries, which are on the verge of bankruptcy and large-scale unemployment." It seemed unlikely that his announcement would be enough to ease anger in the short term and quell protests over the cost of everything from housing to child care. Even as Netanyahu met with his cabinet, thousands of members of the Israeli Medical Association doctors' union gathered outside parliament as part of their ongoing protest in support of better wages and working conditions. And media reported that activists were gathering support for two protest actions -- a general strike on Monday that has already gained the backing of the local authorities' union, and a plan for a mass withdrawal of cash from banks on August 8 to protest against high banking and credit card fees. As the protests gather steam, Finance Ministry Director General Haim Shani submitted his resignation, Ynet reported. In a resignation letter addressed to Finance Minister Yuval Steinitz, Shani said his decision followed "a long-time fundamental difference of opinion and manner of daily work patterns," the website said. "Recent events illustrate the problems I have outlined and support my view that under the current circumstances I cannot fulfil my role as finance ministry director as I see fit," it quoted him as saying. The protests are the largest demonstrations over social issues Israel has seen at least since the early 1970s when thousands of people, led by a group called the Black Panthers, took to the streets to protest against racial discrimination suffered by Mizrahi Jews of Middle Eastern descent. The upheaval began earlier this summer as Israelis launched a boycott of their much-loved cottage cheese in response to the rising cost of the local staple. The action, organised on Facebook and given wide media coverage, managed to bring about a swift drop in the price of the foodstuff, emboldening activists who were already planning protests over the high cost of housing. In mid-July, a small group of mostly young protesters, including students and recently discharged soldiers, began setting up a tent city in the middle of Tel Aviv to illustrate their inability to afford housing in the coastal city. Their action quickly gathered steam, with similar tent camps popping up in other cities and different sectors of society emerging to share their economic discontent. Since 2004, Israel's economic growth rate has averaged 4.5 percent, while unemployment has fallen to around six percent from close to 11 percent over the same period. But gaps between Israel's rich and poor are among the widest in the Western world. In 2011, Israel ranked fifth for unequal income distribution among the 34 member states of the Organisation for Economic Cooperation and Development.