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Economists Warn of Heavy Economic Price for Settlement Expansion and Jewish Terror
On Sunday, October 18, 2026, a group of 61 senior Israeli economists, including former senior officials from the Bank of Israel and the Ministry of Finance, issued a warning that expanding communities in Judea and Samaria and failing to prevent Jewish terror against Palestinians will impose a heavy economic price on all Israeli citizens.
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What happened
- 01A group of 61 senior Israeli economists warned that community expansion in Judea and Samaria and Jewish terror threaten Israel's economy.
- 02The economists cautioned that international sanctions could expand from isolated countries to much of Europe and affect the entire Israeli economy.
- 03The warning letter specifically cited construction in the E1 area and Jewish terror against Palestinians as immediate concerns.
- 04The UK, France, and Canada are considering or implementing import bans and sanctions, while the Netherlands has already restricted travelers carrying products from these communities.
- 05The UN blacklist of companies linked to these communities has expanded to 214 entities, including major Israeli banks and Tnuva.
- 06In the United States, Democratic senators have proposed legislation targeting those involved in construction in the E1 area.
- 07The economists warned that the resulting diplomatic harm and international isolation would ultimately increase the cost of living for all Israeli citizens.
In a letter published by the Forum of Economists for Democracy, the economists cautioned that international sanctions targeting these communities could broaden to affect the entire Israeli economy, worsening the cost of living. They highlighted construction in the E1 area and Jewish terror in Judea and Samaria as immediate concerns, linking the situation to government policy adopted after October 7.
The economists noted that several European nations, including the UK, France, and Canada, are considering or have implemented import bans and sanctions, while the Netherlands has already restricted travelers carrying products from these communities. Additionally, the UN blacklist of companies involved in these areas has expanded to 214 entities, including major Israeli banks and the food producer Tnuva. The economists urged immediate action to prevent further diplomatic and economic isolation.
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