Israeli Economists Warn of Severe Economic Fallout from Settler Violence
Translated & summarized from Panet by baba
Over 60 Israeli economists and former officials warned that continued settler violence and settlement expansion could lead to severe international sanctions and economic damage. They cited potential bans on settlement products by European nations and highlighted 121 restrictive measures already in place globally. The economists also expressed concern that up to 4,000 Palestinian workers in Israeli industrial zones could lose their jobs due to declining orders and potential factory closures. They urged the government to change policies that increase Israel's international isolation.
The story in 5 lines · by baba
- Over 60 Israeli economists warned of severe economic damage from settler violence and settlement expansion.
- International sanctions could include bans on settlement products and harm Israel's ties with Europe.
- 62 countries have implemented 121 restrictive measures against Israel, with financial actions leading.
- Up to 4,000 Palestinian workers in Israeli industrial zones may lose their jobs.
- Economists urged the government to change policies that deepen Israel's international isolation.
Over 60 Israeli economists, academics, and former public officials have issued a stark warning regarding the potential economic repercussions of international sanctions against Israel. They caution that continued settler violence against Palestinians and the expansion of settlements could severely damage Israel's economic ties with European nations, leading to significant harm to the Israeli economy and exacerbating the cost of living.
The economists highlighted actions taken by various countries against settlements, including Britain's intention to ban settlement products and consider sanctions on individuals and companies supporting their expansion. Similar measures are being studied in the Netherlands, with indications of parallel moves in France and Canada.
According to the signatories, construction in the E1 area east of Jerusalem and the failure to prevent what they termed "Jewish terrorism" in the West Bank are primary drivers of escalating international pressure. They also cited government policies, particularly concerning Gaza since October 7th.
A new information repository from the Jewish People Policy Institute (JPPI) details 121 restrictive measures in 62 countries, with financial measures leading the list at 40, followed by security, defense, and trade (24 each), diplomatic (14), and legal (12) actions. Spain, the United States, and Britain are among the countries with the most measures.
The economists expressed concern that widening sanctions could shrink trade relations with Europe, lead to the loss of foreign markets, and increase prices for food and other goods, compounding existing cost-of-living challenges for Israelis.
In a related development, industrial and economic estimates suggest that approximately 4,000 of the 18,000 Palestinian workers legally employed in Israeli factories and industrial zones in the West Bank may lose their jobs soon. There are also fears of factory closures or relocations into Israel proper due to declining foreign orders and canceled long-term distribution contracts. Industrial sources cited the 2015 closure of a SodaStream factory in Ma'ale Adumim as an example, where hundreds of Palestinian workers lost their jobs, though the company stated the move was for commercial reasons.
The forum urged the Israeli government to alter policies that deepen international isolation and to work towards preventing broader economic damage. They emphasized that continued settlement expansion and a lack of action against violence toward Palestinians threaten vital economic relations and warned that the cost would impact the entire Israeli economy, not just the settlements.
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