Israel Faces Growing Sanctions Threat, Netanyahu Warns of "Bypass Economy"
Translated & summarized from Mako by baba
Prime Minister Benjamin Netanyahu warned of severe future sanctions against Israel, urging the development of a "bypass economy." Currently, Israel faces over 100 sanctions, mostly with minor impact, but fears loom over potential actions from the US and EU. The EU might revoke its Association Agreement, while US Democrats could impose financial warfare if they win the presidency in 2029, according to experts.
The story in 5 lines · by baba
- Prime Minister Netanyahu warned of potentially devastating sanctions and the need for a "bypass economy."
- Israel currently faces approximately 109 sanctions from 55 countries, mostly with limited economic impact.
- Existing sanctions often target West Bank settlements, with fears of spillover into the broader Israeli economy.
- The EU is considering revoking its Association Agreement with Israel, which could harm exports and high-tech.
- US Democrats may impose financial warfare on Israel if they win the presidency in 2029, experts warn.
Prime Minister Benjamin Netanyahu has warned of potential heavy sanctions that could force Israel's economy to "organize a bypass economy." This warning comes amid concerns about Israel's declining international standing and the possibility of its allies turning away. Currently, Israel faces approximately 109 sanctions from 55 countries and entities, according to a study by the Institute for the People's Jewish Policy (JPPI). The majority of these existing sanctions have minimal impact, with financial measures being the most common, followed by actions against Israeli academia, the arms industry, and trade.
A significant portion of the current sanctions target the West Bank, including import bans on goods from settlements and new measures against companies and individuals supporting settlement expansion. Countries like the UK, Netherlands, and Spain have implemented such steps, raising concerns that these could eventually affect the broader Israeli economy, potentially impacting Israeli banks and businesses operating with settlements.
Spain leads with 10 sanctions, followed by the United States, the UK, Belgium, and Turkey. However, the primary concern for Israel lies in potential future sanctions from the European Union and the United States. The EU has repeatedly discussed revoking the Association Agreement with Israel, a crucial pact governing trade, research, and security cooperation. While this has been blocked by allies like Germany and the Czech Republic, its cancellation could severely damage Israeli exports and the high-tech sector.
In Washington, calls for action against Israel are also growing, particularly within the Democratic Party. Although initiatives in Congress have been stalled by Republican majorities, a Democratic shift in 2028 could pose a significant threat. Mark Dubowitz, CEO of the Foundation for Defense of Democracies, has cautioned about a "potentially devastating threat of financial and economic warfare from the United States against Israel," suggesting such a campaign is "unavoidable" if the current Israeli coalition remains in power and Democrats win the US presidency in 2029.
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