Economists Warn of Price Hikes in Israel Due to Sanctions
Translated & summarized from Mignews by baba
Over 60 Israeli economists have warned that expanded Western sanctions on settlements in Judea and Samaria could severely damage the economy and cause a sharp rise in prices. The UK has banned trade with settlements, and 12 other Western countries plan similar measures. The economists fear sanctions could affect Israeli companies and banks, urging the government to change settlement policy and address settler violence.
The story in 5 lines · by baba
- Over 60 Israeli economists warn of severe economic damage and price hikes due to potential Western sanctions.
- The UK has banned trade with Israeli settlements; 12 other Western nations plan similar restrictions.
- Sanctions could impact Israeli companies and banks within pre-1967 borders, economists stated.
- Former Bank of Israel Governor Yaakov Frenkel signed the economists' appeal.
- The group urged the government to change settlement policy and combat settler violence.
A group of over 60 economists, academics, and former senior officials, known as the Forum of Economists for Democracy, has issued a warning about the potential for significant damage to Israel's economy. This risk stems from the possibility of expanded Western sanctions targeting settlements in Judea and Samaria, as well as settler violence.
The economists highlighted that the UK has already announced a ban on trade with Israeli settlements, and an additional 12 Western nations have indicated their intention to implement or support similar restrictions. They estimate that if these sanctions broaden to encompass a substantial part of Europe and affect the Israeli economy beyond just the settlements, the repercussions could be extensive.
Specifically, a deterioration in trade relations with European countries could lead to increased prices and a higher cost of living. The forum also expressed concern that the sanctions might impact Israeli companies and banks operating within the pre-1967 borders, citing the difficulty in separating their operations and supply chains from those of the settlements.
Among the signatories of the appeal are Yaakov Frenkel, former Governor of the Bank of Israel, and Manuel Trachtenberg, former head of the National Economic Council. The Forum urged Israeli authorities to alter their settlement policy and take measures against violence, warning that further deterioration of relations with the West poses a threat to the nation's economy.
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