Economists Warn of Irreversible Damage from Sanctions

A group of 109 prominent economists, business leaders, and former public officials have expressed "deep anxiety and concern" over Prime Minister Benjamin Netanyahu's recent remarks regarding the potential imposition of international sanctions on Israel's banking system and a shift to a "crypto economy." In a joint statement, the signatories criticized Netanyahu's proposal to prepare for the use of cryptocurrencies to circumvent sanctions, calling it a "puzzling" idea. They accused the Prime Minister of "consciously leading the State of Israel towards an international economic boycott and isolation," offering a solution that they claim is "accepted in criminal organizations and will be of no help." The signatories warned that economic sanctions would inflict "enormous and irreversible damage" on Israel. They argued that banking sanctions would cripple the Israeli banking system, companies, exporters, and investors, particularly the high-tech sector, which they identified as the economy's growth engine. The economists predict a surge in unemployment, a complete disappearance of foreign investment, and a collapse of Israel's global economic standing. Beyond macroeconomic impacts, the statement detailed direct daily consequences for Israeli citizens, including the inability to use credit cards and blocked access to international e-commerce sites like Amazon and AliExpress. Furthermore, they stated that foreign workers would leave en masse due to difficulties in transferring funds home, and the healthcare system would struggle to procure medical equipment and medications. The signatories emphasized that economic sanctions would "completely destroy the model that enables Israel's existence as a modern and advanced economy." They drew parallels to countries like South Africa, Iran, and Russia that have faced similar sanctions, warning that Israelis' standard of living would plummet, and the nation's ability to fund its defense and protect itself would be severely compromised. The list of signatories includes notable figures such as Nobel laureates Professor Yoel Mokyr and Professor Aaron Ciechanover, former Bank of Israel Governor Professor Yaakov Frenkel, former Deputy Governors Professor Zvi Eckstein, Dr. Nadine Baudot-Trajtenberg, and Professor Avia Spivak, and former Supervisors of Banks Yair Avidan and Roni Hizkiyahu. Also signing are former Ministry of Finance Directors General Yarom Ariav, Professor Avi Ben-Bassat, Haim Shani, and David Brodet, along with former Budget Commissioners David Boaz and Professor Udi Nisan, and former Chairman of the National Economic Council Professor Manuel Trajtenberg. Other signatories include President of the Israel National Academy of Sciences Professor David Harel, Israel Prize laureates Professor Avishai Braverman and Professor Sergio Hart, former Chief Scientist and Chairman of the Israel Innovation Authority Avi Hasson, and Head of the Forum of Economists for Democracy Professor Itai Atter. Prominent figures from the business and high-tech sectors also signed, including CyberArk founder Alon Cohen, high-tech entrepreneur Dov Moran, former Ministry of Finance Chief Economist Shira Greenberg, Check Point co-founder Marius Nacht, Fireblocks founding partner Idan Ofer, G City founder and CEO Haim Katzman, and Big Shopping Centers Chairman and CEO Eitan Bar Zev and Chai Galis.