Economists Warn International Sanctions on Settlements Will Harm Israel's Economy
Translated & summarized from Walla by baba
Over sixty Israeli economists and former public officials have warned that international sanctions targeting settlements will harm the entire Israeli economy. Citing actions by Britain and potential measures from France and Canada, they state that Jewish violence in the West Bank and settlement expansion are the immediate triggers. The economists fear a significant escalation of economic damage and a rise in the cost of living, urging a policy change to prevent Israel's isolation.
The story in 5 lines · by baba
- Over 60 Israeli economists and former officials warned international sanctions on settlements will harm Israel's economy.
- Britain plans to ban settlement imports and consider sanctions, with similar moves eyed by France and Canada.
- The economists cite Jewish violence in the West Bank and settlement expansion as triggers for international action.
- They warn of escalating economic damage and a significant increase in the cost of living for all Israelis.
- The Economists Forum calls for a policy change to prevent Israel's isolation and mitigate economic harm.
Over sixty senior economists, academics, and former public service officials have signed a warning letter from the Economists Forum, cautioning that international measures against Israeli settlements pose a threat to Israel's entire economy. The signatories argue that Jewish violence and terrorism against Palestinians will lead to severe economic repercussions for all citizens.
The letter specifically mentions Britain's announced intention to ban imports from settlements and consider sanctions against companies and individuals involved in their expansion. Similar actions are being considered or implemented in the Netherlands, France, and Canada.
The economists attribute these international moves to the construction in the E1 area and what they term "Jewish terrorism" in the West Bank, which they perceive as government-backed, alongside the government's policies in Gaza. They warn that the damage to the Israeli economy could escalate significantly if these measures expand beyond a few countries to encompass a substantial part of Europe and extend from settlements to the broader Israeli economy.
There is a growing concern about a significant deterioration in economic relations between Israel and Europe, which could result in widespread macroeconomic damage. The forum highlights that approximately 100 sanctions are already imposed by over 50 countries, with additional private sector initiatives gaining momentum. The economists warn that these sanctions will likely lead to a substantial increase in the cost of living, a pattern observed in international experience.
This escalation comes amid recent data showing a sharp rise in food prices, with the cost of the food basket increasing nearly fivefold in the last four years compared to the preceding four years. The Economists Forum is calling for a policy change to prevent Israel's deepening isolation and mitigate further economic damage. Notable signatories include Professor David Harel, President of the National Academy of Sciences; Professor Yaakov Frenkel, former Governor of the Bank of Israel; former Deputy Governors Professor Zvika Akstein and Professor Avia Spivak; former Supervisor of Banks Yair Avidan; former Director Generals of the Ministry of Finance Professor Avraham Ben-Bassat, David Brodet, and Yarom Ariav; and former Head of the National Economic Council Professor Manuel Trajtenberg.
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