Israeli Economists Warn of Severe Economic Fallout from Settlement Expansion and Settler Violence

Over 60 Israeli economists have issued a petition warning of severe economic consequences for Israel stemming from settlement expansion in the West Bank, particularly in the E1 area, and from settler violence against Palestinians. The economists, including former high-ranking government officials and academics, urged a policy change to prevent further isolation and damage, stating, "We must prevent this damage now, while it is still possible." The petition highlights potential international repercussions, citing Britain's intention to ban products from settlements and explore sanctions against companies and individuals involved in their expansion, alongside similar planned actions by the Netherlands, France, and Canada. These international moves, the economists noted, are occurring against the backdrop of construction plans in E1, government support for settler violence in the West Bank, and the ongoing conflict in Gaza. They cautioned that the economic damage to Israel could escalate if more countries impose sanctions, potentially affecting all Israeli economic sectors and leading to a significant deterioration in economic relations with Europe. The petition points to existing sanctions imposed by over 50 countries and private companies on settlements and Israeli businesses operating within them, predicting these will contribute to a substantial rise in the cost of living, a pattern observed in international sanctions history. A report by the "Jewish People Policy Institute" identified 121 sanctions against Israel in 2022, with 93 deemed active, 19 historic, and 9 proposed or planned. Spain leads with 10 actions, followed by the United States with 8 academic measures and two historic steps, Britain with 7, and Belgium and Turkey with 5 each.