Prime Minister Benjamin Netanyahu gives a press conference, a day after he sparked outrage by saying that Israel was facing increasing isolation on the world stage due to the war in Gaza, and will have to become a more self-reliant “super-Sparta” in the years to come, saying that the negative reaction from the markets was a “misunderstanding.”
Netanyahu insists he has “full confidence in Israel’s economy,” adding that “even more so, [Israel’s economy] has amazed the entire world in the past two years while we’ve been at war.”
He says that the shekel is stronger than before the war, the stock market is performing at record levels, unemployment is at a historic low, there’s been a large influx of foreign investment into Israel recently, and housing prices are dropping.
He concedes that there are efforts to isolate Israel, but says that these are politically motivated and not economic.
“I don’t dismiss the attempts to restrict us economically—we are aware of them. It’s possible there will be such attempts. But the world wants the products that Israel produces,” he says.
He clarifies that his comments yesterday were focused on the defense industries rather than the broader economy.
“There is one area I referred to where indeed there could be restrictions – not economic ones, but political at their core – and that’s what’s happening in the defense industries,” he explains.
“Our defense industries are soaring. They have reached tremendous achievements in exports, both in quantity and quality, but there we have indeed encountered—and could again encounter—political restrictions during the war,” he goes on.
“And if there is one lesson we have drawn from this war, it’s that we want to be in a situation where we are not restricted—that Israel defends itself with its own forces and with its own weapons. And that is why we want to achieve security independence.
“Yesterday, when I spoke with people from the Finance Ministry, with farmers, and with others, I said: don’t restrict us. We are leaping forward, both in new technology and in production on a much more industrial scale. And to do this, I need to cut the bureaucracy that restricts us from doing these things…And that’s what I was referring to. In other words, we are striving for security independence. And I asked them to cut the bureaucracy.”
He appears to address the plunge of shares on the Tel Aviv Stock Exchange following his remarks, saying: “There was a misunderstanding that supposedly shook the stock market.”
“It didn’t shake us. And the reason it didn’t shake us is one thing: because essentially, the stock market—the markets—understand what I said, the strength of Israel’s economy, and the profitability of investing in Israel. And this is very important for ensuring our future,” he says.
Even though Netanyahu announced he would hold an economic press conference, Channel 12 reported that Finance Minister Bezalel Smotrich refused to take part in the event, despite being invited.
During a meeting with Netanyahu yesterday, Smotrich reportedly told Netanyahu: ‘You caused the damage, you fix it.”