A Knesset committee approved late Tuesday night a financial reform bill that will allow for the import of dozens of consumer products to Israel marketed in the European Union.

This move is expected to dramatically reduce the cost of living in Israel and create a structural change in the Israeli market.

The bill was approved in the Ministerial Committee on Fighting the Cost of Living chaired by Likud MK David Bitan, and is now slated for second- and third-read votes in the Knesset.

In February, the Knesset’s ministerial Cost of Living Committee approved a new reform that would allow Israel to import products marketed in the European Union.

The reform aims to reduce the cost of living in Israel and bring about a change in the Israeli market by following EU-approved standards as sufficient evidence of adequate consumer standards without requiring another set of evaluation tests for the Israeli market.

Economy Minister Nir Barkat who chaired the committee said at the time, “This is a historic day. For decades, we have been trying to solve the problem of the high cost of living in Israel, and for the first time, we have a comprehensive solution at hand.”

Good for Europe, good for Israel

Prime Minister Benjamin Netanyahu also addressed the move at the time, stating, “What is good for Europe is good for Israel. This week, we will bring a memorandum of law for rapid legislation to the Knesset. This will greatly reduce the prices of cosmetics and food in the State of Israel.”