Economists Warn Sanctions on Settlements Could Harm Israel's Entire Economy

The signatories, including former senior officials from the Bank of Israel and the Finance Ministry, expressed grave concern over a darkening cloud hanging over the country's economic future. They warned that international sanctions, which currently target communities in Judea and Samaria, could expand to encompass the entire Israeli economy. This expansion would worsen the ongoing cost of living crisis and threaten irreparable harm to economic relations with key Western trading partners, particularly in Europe.

According to the economists, countries such as the United Kingdom, France, and Canada are considering or implementing import bans and sanctions. The United Kingdom is reportedly planning measures in response to construction advancement in the E1 area and Israeli policies in Gaza. Additionally, the United Nations has expanded its blacklist to 214 companies linked to these communities, a list that includes Tnuva and all Israeli banks. The economists noted that approximately 100 sanctions have already been imposed by over 50 countries.

The warning highlights that an atmosphere of boycotts is already impacting Israeli academia, culture, sports, and the defense industry. The economists urged immediate preventative action to avoid macroeconomic damage that could target construction companies, infrastructure firms, and financial institutions.