80 ISRAELI ECONOMISTS WARN GAZA REOCCUPATION TO SPARK ‘SEVERE ECONOMIC CRISIS’

Wed 24 September 2025:

Dozens of Israel’s leading economists warned that a full military reoccupation of the Gaza Strip would push Israel into an unprecedented economic downturn.

In a statement reported Monday by the Israeli outlet Walla, more than 80 academics and former senior officials at the Finance Ministry and Bank of Israel said the plan would “weaken Israel’s financial foundations” and create a direct threat to national security.

They argued that the cost of administering Gaza, combined with military spending, would require tens of billions of shekels and force tax increases, cuts to public services, and potentially a downgrade of Israel’s credit rating. The statement also cited risks of capital flight, reduced productivity, and a growing debt burden.

__________________________________________________________________________

https://whatsapp.com/channel/0029VaAtNxX8fewmiFmN7N22

__________________________________________________________________________

“An economy under such pressure cannot sustain the war effort over time,” the economists said, adding that brain drain and falling investment would further erode Israel’s competitiveness. They warned that European partners and other trading allies could impose sanctions, worsening the downturn.

Among the signatories were Manuel Trajtenberg, a former head of the National Economic Council; Zvi Eckstein, a former deputy governor of the central bank; Avi Ben-Bassat and Yarom Ariav, both former directors-general of the Finance Ministry; and Michel Strawczynski, a former head of research at the Bank of Israel.

The warning comes as Prime Minister Benjamin Netanyahu continues to reject ceasefire proposals that included prisoner exchanges with Hamas. Israeli analysts say his government is steering toward a long-term military administration in Gaza, though it has yet to outline a clear postwar plan.

The Israeli army has continued a brutal offensive on the Gaza Strip, killing more than 65,000 Palestinians since October 2023. The military campaign has devastated the enclave, which is facing famine.

Last November, the International Criminal Court issued arrest warrants for Netanyahu and his former Defense Minister Yoav Gallant for war crimes and crimes against humanity in Gaza.

Israel also faces a genocide case at the International Court of Justice for its war on the enclave.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

__________________________________________________________________________

FOLLOW INDEPENDENT PRESS:

WhatsApp CHANNEL
https://whatsapp.com/channel/0029VaAtNxX8fewmiFmN7N22