If anyone had doubts about the corrupting effects of the absolute economic and financial power our bank duopoly wields, the multi-million shekel campaign they have recently launched in an effort to block Netanyahu’s bold financial market reform, should remove them. The campaign has revealed to what length the bankers are willing to go in order to preserve a monopolistic system that has enriched them personally but has impoverished everyone else, a system that is responsible for most of the ills afflicting the Israeli economy.

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.

Many of us watched with wonderment your conciliatory gesture toward Histadrut Chairman MK Amir Peretz. The populist Peretz, who has tried to exploit the layoffs in your bank, Hapoalim, to make political hay, actually represents the highest paid and most regressive public monopoly unions. To advance their interests, he sacrifices the employment prospects of the unemployed and lower paid workers. Peretz published big posters in which you were depicted “laughing all the way to the bank” while the families of your laid off workers were shedding tears. Still, you agreed to hand him a small victory by rescinding some of the layoffs.