Economist Manuel Trajtenberg Urges Defense Budget Cuts, Diplomatic Deals

Professor Manuel Trajtenberg, a key figure in the "Tractenberg Committee" formed in 2011 to address the cost of living, is now advocating for a relative reduction in Israel's defense budget and a pursuit of diplomatic agreements. Trajtenberg, who is also a founding member of Gadi Eisenkot's "Yashar!" party, believes that Israel's security situation is significantly better than in 2023, making large defense expenditures unnecessary. He criticizes the current government's projected defense budget of over 180 billion shekels (excluding US aid) as excessive and potentially leading the country towards an "إن"lost decade" similar to the post-Yom Kippur War era.

Trajtenberg argues that a substantial reduction in defense spending must begin, even if not immediately drastic. He suggests that the government should aim to end multi-front warfare and reach political settlements. This approach, however, is met with strong opposition from commentators who argue that diplomatic agreements and withdrawals have historically led to increased security and economic costs, citing examples like the Sinai withdrawal, the Oslo Accords, the 2000 Lebanon withdrawal, and the 2005 Gaza disengagement.

Critics contend that Trajtenberg's plan, which relies on diplomatic solutions as a substitute for a strong military, is flawed. They assert that a powerful and deterrent military is a prerequisite for any successful diplomatic agreement. Historical precedents, such as the tunnels from the Sinai that armed Hamas and the Second Intifada following the Oslo Accords, are presented as evidence that territorial concessions and military downsizing have resulted in greater conflict and loss of life. The article concludes that Trajtenberg's proposed plan, if implemented, would not only fail to save money but would also escalate state expenditures and lead to more severe wars with greater casualties due to a weakened military.