Netanyahu Discusses Economy, Crypto, and National Strategy in Interview

Prime Minister Benjamin Netanyahu, in a special interview with Bizportal, addressed a range of economic and strategic issues, including his controversial suggestion that cryptocurrency could be a tool to circumvent international sanctions. He clarified that while not the sole solution, it's a potential option if sanctions on Israel were to expand. This statement drew criticism from the Governor of the Bank of Israel and others, who expressed concern over even theoretically reaching such a situation. Netanyahu, however, suggested this was a calculated move aimed at his political base, particularly voters of parties like Otzma Yehudit and Religious Zionism, who he believes are most vulnerable to sanctions.

Netanyahu outlined his economic platform, promising not to raise taxes if re-elected. He plans to appoint a "project manager" to integrate the Haredi (ultra-Orthodox) community into the workforce, emphasizing that a strong economy is the foundation of national security. He highlighted current economic strengths, including record exports and investments, and pledged to continue combating monopolies. Netanyahu also spoke about his plans to foster economic growth by reducing regulation, promoting free market principles, and positioning Israel as a global leader in artificial intelligence, drawing parallels to its success in cybersecurity.

Addressing the national deficit, exacerbated by the recent war, Netanyahu asserted that encouraging investments and exports, which are at an all-time high, will increase state revenues. He linked military achievements to investor confidence, stating that demonstrating Israel's ability to defend itself reassures investors. He also stressed the importance of concluding military operations to eliminate the perceived Iranian threat, which he believes deters foreign investment. The Prime Minister also noted that declining interest rates, falling inflation, and reduced unemployment contribute to economic stability, citing the IMF's high growth forecast for Israel in 2026.

Regarding fiscal policy, Netanyahu reiterated his commitment to avoiding tax increases, arguing they would hinder growth. Instead, he favors stimulating the economy through increased salaries and corporate income, which indirectly boosts state revenue. He also touched upon coalition finances, suggesting that a stronger Likud party would allow for greater cuts in unnecessary spending, contrasting it with past coalition agreements. He aims to dismantle market monopolies and reduce prices by opening the market, a process he described as a continuous battle against entrenched interests.

On housing, Netanyahu detailed efforts to attract foreign workers to replace Palestinian laborers, leading to an increase in construction starts and permits. He expressed optimism that this will eventually lower housing prices. He also addressed the need for increased defense spending, proposing to fund it through significant defense export deals and overall economic growth, rather than cutting civilian services. He reiterated his vision for Israel to become an AI powerhouse, similar to its cybersecurity achievements, and emphasized the importance of integrating Haredi and Arab citizens into the workforce, including through AI education in schools.