Netanyahu's Sanctions Plan Criticized by 100+ Israeli Economists
Translated & summarized from Cursorinfo by baba
Over 100 Israeli economists and former officials have criticized Prime Minister Benjamin Netanyahu's plan to counter potential sanctions, warning it would cause severe economic damage. They argue that using cryptocurrencies, as suggested by Netanyahu, is not a viable solution and could lead to isolation. The Bank of Israel also opposes the cryptocurrency idea, stressing the need to maintain trade relations. The critics fear widespread unemployment and a halt to foreign investment if sanctions are imposed.
The story in 5 lines · by baba
- Over 100 Israeli economists and former officials criticized PM Netanyahu's sanctions evasion plan.
- Critics warn sanctions would cause "enormous and irreversible damage" to Israel's economy.
- They argue cryptocurrencies are not a viable solution to circumvent international sanctions.
- The signatories predict a rise in unemployment and a halt to foreign investment.
- The Bank of Israel also rejected the use of cryptocurrencies to bypass sanctions.
Israeli Prime Minister Benjamin Netanyahu's proposed economic plan to counter potential international sanctions has drawn sharp criticism from over 100 prominent economists, entrepreneurs, and former senior officials. The group expressed their concerns in an open letter, published by the Ynet news portal, following Netanyahu's statements about the risk of sanctions against Israeli banks and his suggestion to explore the use of cryptocurrencies to circumvent potential restrictions.
The signatories warned that international sanctions on Israel's banking system would inflict "enormous and irreversible damage" that cryptocurrencies could not compensate for. Among the prominent signatories are Nobel laureate in Economics Professor Yoel Mokir, former Bank of Israel head Yaakov Frenkel, and Nobel laureate in Chemistry Aharon Chekanover. Four former Directors-General of the Ministry of Finance also supported the letter: Yarom Arav, Avi Ben-Bassat, David Brodet, and Haim Shani. Brodet also previously headed the budget department and the board of directors of Bank Leumi.
The letter argues that sanctions could paralyze banks, companies, exporters, and investors, particularly impacting the crucial high-tech sector. They predict a sharp rise in unemployment, a halt to foreign investment, and a weakening of Israel's global economic standing. The signatories also cautioned that sanctions could prevent Israelis from using credit cards and ordering goods from international online retailers, potentially leading to a mass departure of foreign workers unable to send money home.
"Economic sanctions will completely destroy the model that ensures Israel's existence as a modern and developed economy," the letter states. The signatories accuse Netanyahu of leading Israel toward international isolation by proposing a "useless tool used by criminal groups" instead of addressing economic problems. They believe his statements indicate a misunderstanding of the situation amid the country's deteriorating international standing.
The Bank of Israel also rejected the idea of using cryptocurrencies to bypass sanctions, emphasizing the importance of maintaining ties with key trading partners and preventing the imposition of restrictions.
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