Israeli Defense Firms Warn Netanyahu of Production Halt Over Funding Freeze

Heads of major Israeli defense companies have issued an ultimatum to Prime Minister Benjamin Netanyahu, warning that ammunition production lines could halt within a month due to a freeze on 40 billion shekels in funding. In a letter to Netanyahu, they stated that the Finance Ministry's blockage of these funds poses a direct threat to national security, according to Mako.

This escalation is part of an ongoing "budgetary conflict" between the Israel Defense Forces (IDF) and the Finance Ministry. The defense sector is demanding the immediate release of the 40 billion shekels previously promised by the prime minister. The companies warned that without new state orders and financial commitments, the inability to produce certain munitions could severely undermine the IDF's combat capabilities.

Amid the budget crisis, IDF leadership is preparing for austerity measures to prevent a deficit. These measures include reducing reserve duty days, which will increase the burden on conscripts, and halting repairs and restoration of tanks and armored personnel carriers damaged in combat. Furthermore, long-term procurement plans, including the delivery of combat helicopters and aircraft, are expected to be delayed by several years.

Security officials emphasized that these cutbacks critically impact the army's readiness while combat operations continue on multiple fronts.