Mind-bogglingly little attention is being paid to the fierce debate in the legislature over the Bachar Commission banking reform proposals, on which the nation’s democratic fabric and even its very survival depends.

Politics, especially related to security and the putative peace process, have always dominated Israeli public life. They became, inevitably, an end in themselves, consuming immense energies and resources. As a result, Israel neglected its many economic and social problems, with negative repercussions on security and peace as well.

The present political turmoil in Israel over the reshuffling of Sharon’s coalition is a good example. It seems that for the sake of an uncertain disengagement plan – a unilateral withdrawal, really – Sharon is going to threaten the one major achievement of his coalition: an economic reform that will greatly strengthen Israel and also enhance its ability to make peace.

The recent announcement by Finance Minister Benjamin Netanyahu that he is determined to launch a basic reform of financial markets by July of this year has added fuel to an already flaming debate about the role of our banks and the necessity of a radical reform to end their absolute domination of financial markets.