The letter is signed by 61 senior Israeli economists and was published Sunday. Its message: settlement expansion in the West Bank, and a failure to stop violence against Palestinians, could bring Israel sweeping international sanctions, deeper economic isolation and a higher cost of living for everyone in the country.
The economists argue that diplomatic disputes over the West Bank could spread to the broader economy rather than staying confined to businesses working in the territory. They wrote that “the damage to Israel’s economy could increase by orders of magnitude if such measures spread from a handful of countries to a significant portion of Europe and extend beyond the settlements to the Israeli economy as a whole.”
What the letter documents
According to the letter, foreign restrictions already touch trade, financial ties, defense transactions and international cooperation. It counts “approximately 100 sanctions imposed by more than 50 countries,” with financial measures and limits on arms transactions among the most prominent.
It also points to the United Nations database of companies linked to settlement activity. The economists say it now lists 214 companies from 11 countries, most of them Israeli, including all Israeli banks and Tnuva.
Boycotts, the authors add, are hurting Israeli academia, including fields the high-tech industry depends on. They name two further examples: delivery delays for the INS Drakon submarine, which they tie to the defense industry, and artists who refuse to perform in Israel.
The authors’ warning
The letter says the settlement policy and the failure to prevent what it calls Jewish violence and terrorism against Palestinians are causing diplomatic damage, feeding Israel’s isolation and carrying a high economic cost that every resident will eventually bear. It describes the international sanctions movement as gaining momentum, and calls on authorities to prevent violence and weigh the wider economic effects of their West Bank policies “while there is still time.” The Jerusalem Post reported on the letter. The warning is the assessment of the economists who signed it.
Cost-of-living pressure at home
The letter arrives alongside a National Union of Israeli Students survey, which found that nearly one in three students is considering leaving the country because of the cost of living. The average student’s monthly expenses have reached NIS 6,907, and nearly half rely on financial help from their parents.
Sources
- ECONOMIC WARNING: 61 Israeli Economists Caution That Violence In Judea And Samaria Could Trigger Wider Sanctions
- Israeli economists: West Bank settlers, Jewish terror pose severe economy risk | The Jerusalem Post
- 61 economists warn Israel of sanctions risk — Jerusalem Post
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