President Reuven Rivlin on Sunday night the eve of 24 Marcheshvan launched this year’s ‘Shmitah’ project based on the idea of innovating and aligning the values of ‘Shmitah’ in such a way that will be true to the values of our lives today: democracy, equality, mutual responsibility, personal responsibility, restoring the citizen’s confidence in the public system and in businesses, and the maintaining a social safety net that will allow families to move from living a life of debt, to making a living with dignity.

The President stated, “During the last few ‘Shmitah’ years, the discussion focused mainly on the agricultural significance of the mitzvah itself. The mitzvah around the ‘remission of debts’, which is embodied in the biblical sabbatical year was hardly discussed in the public or religious debate. The significant initiative presented by MK Ruth Calderon and the various partners in the initiative, revolved around restoring the relevance of the ‘Shmitah’ principles, in its economic and social aspects. These are principles that Israeli society needs at all times, now, just as much as in biblical times.

“We share a common responsibility towards the world, and especially towards the society in which we live. Mutual trust, which originates in shared responsibility, was the glue that held the people of Israel in exile. It was eventually discovered that this fabric was particularly significant in the establishment of the State of Israel and in the building of this country. Were it not for mutual guarantees we would have been washed away in the rough waters of history. Mutual responsibility saved us and consolidated our identity as a people. We are used to saying that ‘All of Israel’s people are responsible for one another’. And indeed, all of Israel’s people are responsible for each other, meaning, that the debt of the individual, (whether it be a moral, economic or another kind of debt), becomes in a sense a public debt. It is important to emphasize that I am not naive. Debt accumulation takes a toll and the arbitrary erasing of that debt is not only unjust, but also disrupts the order of economic life. A healthy economy cannot enable limited resources to be provided for free. Therefore the ‘Shmitah’ project translates the principle of fiscal relief into to the sharing of responsibility – by families in debt, creditors (the business sector) and by the general public.”

The pesident emphasized that there are actions that can be taken to help families with lesser financial means to improve the economy. He said, “Let me suggest economic principles that are in the spirit of the ‘Shmitah’ year. These principles can be applied at the macroeconomic level and not just dependent on the good will of caring citizens. Firstly, we have to minimize the worrying phenomenon of increasing debt in households (which endangers so many families) so that it will be lowered in advance. Part of the solution most likely lies in training and financial education, but the extent of the problem indicates that action by the regulator should also be considered. Such action might restrain to an extent, the motivation to lend money on the part of the relevant bodies. Secondly, we should examine the consequences of establishing a credit association (cooperative banks), which give expression to the values of mutual guarantees and trust in the credit system itself (in the spirit of the teams’ recommendations to increase competition in the banking sector). In this framework, there is a pre-existing higher obligation between the borrower and the lender which can lower the cost of debt. In this regard we can find inspiration in the models developed in the Haredi community, which manage to translate mutual guarantees into an effective economic-consumer force. Finally, there needs to be a more significant and responsible mobilization of the business sector (particularly large companies) toward the economy in which they operate. These companies are not exempt from asking themselves moral questions regarding concern for their customers, their employees’ welfare and the society in which they operate.

“The sabbatical year is an opportunity to create confidence-building measures in the triangular relationship between the regulator, the companies and the public consumer – trust, which was damaged in recent years, especially on the part of the consumers. The ‘Shmitah’ project demonstrates how such moves, not only restore the trust between the parties, but also create a situation in which all sides benefit.”

The president concluded by saying: “The sabbatical year offers us justice, which is not merely charity. It carries the voices heard around the country during the social protests that took place in the summer three years ago. Let’s find out what individual part we all play in establishing trust and strengthening mutual guarantees, between the different parts of the economy and Israeli society. Thank you to all the people involved, and all the partners in this blessed project.”

MK Dr. Ruth Calderon, who initiated the project, said, “This project is the actual implementation of the values of the Jewish Sabbatical, whose goal is to help families deep in debt and at the same time to realize the Jewish biblical values in a contemporary and groundbreaking way. Through this, we can show that it isn’t by turning our backs on Jewish traditions but rather by serious action and commitment to Jewish culture, that will allow us to move forward as a united society.

“It should be noted that the project will support approximately five thousand families in debts that do not allow them to proper function economically. These families are prepared to commit to a comprehensive process, which includes considering to sources of income, income and expense management, professional training and acquiring tools for the correct economic control – personally and as a family.”

The event was attended by 150 guests including MK Dr. Ruth Calderon, Professor Eugene Kandel, Head of the National Economic Council, Elhanan Glatt, Director General of the Religious Services Ministry, Knesset Members, representatives of NGOs participating in the project, and representatives from the business and public sector.

(YWN – Israel Desk, Jerusalem)