Finance Minister Bezalel Smotrich Discusses War Economy, Settlements, and Palestinian Statehood

In an extensive interview with Newsru.co.il, Israeli Finance Minister Bezalel Smotrich detailed his management of the Israeli economy during the ongoing war, his ideological positions on settlements and Palestinian statehood, and his views on various political figures.

Smotrich asserted that despite the war's immense cost, estimated at over 300 billion shekels, Israel's economy has remained stable due to professional decision-making and fiscal consolidation. He highlighted measures taken to support over a million businesses and reservists, emphasizing the importance of maintaining market confidence, which he claims was achieved through prudent financial management, evidenced by favorable loan rates.

Regarding the West Bank settlements, Smotrich described a "revolution" in Judea and Samaria, attributing significant investment in infrastructure like new highways and improved living conditions to his efforts. He stated his goal is to bring one million settlers to the region, believing this will solidify Israeli control and thwart the establishment of a Palestinian state. He acknowledged that while he invested billions in settlements, he also allocated significant funds to areas like Sderot and northern border communities.

On the issue of Palestinian statehood, Smotrich unequivocally stated his aim is to "destroy the very idea of a Palestinian state." He believes that expanding settlements and increasing the Jewish population in Judea and Samaria is crucial for Israel's security and identity, contrasting this with the potential threat posed by a Palestinian state, which he argues would endanger Israeli communities.

Smotrich also addressed the controversial topic of ultra-Orthodox conscription, defending his approach as a gradual, consensus-based process rather than a forceful one. He criticized the opposition for what he termed "antisemitic campaigns" against the ultra-Orthodox community and defended the government's allocation of funds to their educational institutions, pointing to reforms he implemented, such as mandatory proficiency exams.

He further discussed the broader security situation, noting that while Hamas has not been fully destroyed, Gaza is in ruins, and significant operations have been conducted in Lebanon. Smotrich expressed a desire for Israel to annex territory up to the Litani River in Lebanon and the "yellow line" in Gaza, arguing that ending the war at the pre-war borders would invite future conflict. He also voiced strong opinions on the need to restore the state's monopoly on force, particularly concerning crime in the Arab sector and the perceived failures of the justice system.