Economists Warn of Severe Economic Impact from Potential Sanctions on Israeli Settlements
Translated & summarized from Vesty by baba
Over 60 Israeli economists and former officials warned that international sanctions targeting settlements could severely damage the Israeli economy, leading to increased living costs. The signatories cited settlement construction and "Jewish terror" as triggers for potential measures by countries like the UK, Netherlands, France, and Canada. A separate report by the Jewish People Policy Institute identified 121 restrictive measures against Israel in 62 countries, impacting finance, security, and trade. Israeli industry is already experiencing reduced foreign orders and contract cancellations, with concerns about losing key European markets.
The story in 6 lines · by baba
- Over 60 economists warned international sanctions on settlements pose a severe threat to Israel's economy.
- Potential sanctions are linked to settlement construction in E1 and "Jewish terror" against Palestinians.
- The UK, Netherlands, France, and Canada are considering import bans and sanctions against Israeli settlements.
- A JPPI database lists 121 restrictive measures against Israel in 62 countries, primarily financial and trade-related.
- Israeli industries are already reporting reduced foreign orders and cancelled contracts due to the current climate.
- The economists urged a policy change to avoid deepening Israel's international isolation and economic damage.
Over 60 economists, academics, and former senior civil servants have issued a stark warning regarding the potential economic consequences for Israel should international sanctions be imposed on settlements. A collective letter, published on Sunday, October 18, detailed concerns that such measures, particularly those targeting settlements, represent a "very alarming signal" for the Israeli economy. The signatories, associated with the Forum of Economists, stated that "Jewish terror" against Palestinians, coupled with settlement construction in the E1 area and policies perceived as government-backed, are the immediate triggers for this international scrutiny. They cited specific intentions from the UK to ban imports from settlements and consider sanctions against companies and individuals involved in their expansion, with similar considerations being explored in the Netherlands, France, and Canada.
The economists emphasized that the damage could escalate significantly if sanctions move beyond specific settlements to encompass broader Israeli economic activities, especially if a substantial portion of Europe were to adopt such measures. This could lead to a "significant macroeconomic damage" and a "noticeable increase in the cost of living," a phenomenon they noted is well-documented internationally and which Israelis are already experiencing, as evidenced by recent sharp increases in food prices.
The letter calls for a change in policies that are deepening Israel's isolation, urging the government to prevent further economic harm. The signatories, including prominent figures such as Professor David Harel, President of the Israeli National Academy of Sciences, and former Bank of Israel Governor Professor Yaakov Frenkel, along with former deputy governors and finance ministry directors, stressed that continued settlement expansion and inaction against "Jewish terror" directly threaten vital economic relations.
Separately, the Jewish People Policy Institute (JPPI) has compiled a database tracking 121 restrictive measures against Israel across 62 countries. Of these, 93 are currently active. The measures span various sectors, with financial restrictions being the largest category (40), followed by security and defense (24), and trade (24). Spain has the highest number of measures (10), followed by the United States (8) and the United Kingdom (7).
Despite the number of measures, their impact varies, with some single actions potentially carrying more weight than multiple others. The JPPI's data highlights the global reach of these measures, extending beyond Europe to North America, Latin America, Asia, Africa, and Oceania. The Ministry of Economy and Industry, the Foreign Trade Administration, and the Manufacturers Association have already reported a sharp decline in foreign orders and the cancellation of long-term distribution contracts, with industrialists expressing concern about losing markets in Western Europe. Industrial zones like Barkan and Mishor Adumim, which employ thousands of Palestinians, are among the areas facing potential disruption.
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