Lieberman Warns US Recognition of Palestinian State Within Two Years

Former Minister Avigdor Lieberman warned at a venture capital conference that the United States could recognize a Palestinian state and impose sanctions on Israel within two years if the current situation persists. He stated that Britain is already discussing sanctions on Israeli banks, which would severely impact Israel's high-tech industry, requiring international acceptance and mobility. Lieberman stressed the need to normalize Israel's international standing as a first step, highlighting that a strong economy could surpass Switzerland and Norway within four to five years with proper management. He proposed measures such as institutional investors funding startups, reducing bureaucracy, and consolidating regulatory bodies. Lieberman also called for a joint emergency task force with global Jewish communities to manage international public opinion and addressed internal political issues, including accountability for the October 7th failures and a universal draft law.

Former Prime Minister Naftali Bennett also spoke at the conference, emphasizing the critical role of high-tech in sustaining Israel's economy. He advocated for creating a stable and functional business environment to retain entrepreneurs and companies. Bennett proposed attracting global Jewish talent, particularly in light of rising antisemitism, and improving access to advanced STEM education in peripheral areas. He also called for constitutional reform to preserve the liberal public and remove obstacles to industry operations. Bennett suggested a dedicated professional center to address regulatory and bureaucratic issues hindering businesses and expressed concern over damage to Israel's image and international trade relations.

Karin Meir Rubinstein, CEO and President of IATI, echoed concerns about Israel's competitiveness, urging regulatory certainty and competitive business conditions. The organization is working with government ministries on solutions, including a potential capital gains tax exemption for tech entrepreneurs and investors, similar to the US QSBS model. IATI is also addressing the impact of a strengthening shekel on dollar-denominated revenues and seeking regulatory clarity on Pillar 2 regulations.