Prime Minister Benjamin Netanyahu spoke Monday at the Accountant General's Conference and issued a significant warning: "Israel is entering diplomatic isolation. We will have to deal with a closed economy. The world is dividing into blocs, and we are not part of any bloc. That makes it easier to isolate us. We also have a technological and scientific advantage that creates dependence on us and gives others an interest in maintaining ties with us."
"We may find ourselves blocked not only in research and development, but also in production itself. Our defense industries could be blocked, and we will have to be Athens and super-Sparta, adapting to an autarkic economy. We have no choice. At least for the coming years, we will have to cope with these attempts at isolation, and we must first develop the ability to manage on our own."
Netanyahu's remarks drew two main interpretations. The first is that he was referring to economic resilience – ensuring Israel's economy can sustain itself under extreme conditions. Lessons from the October 7 Hamas massacre and the subsequent war with Iran point to the need for redundancy in critical systems and the ability to maintain essential functions even under massive missile barrages or ground combat. Bank of Israel Governor Prof. Amir Yaron has raised similar points in the past.
The second, more troubling interpretation is that Netanyahu was warning of a potential geopolitical scenario in which Israel could face sanctions. Such measures could severely disrupt Israel's economic and trade ties with the world, a scenario that would have significant consequences not just for Israel but for the global economy as well.
Meanwhile, Finance Ministry Director General Ilan Rom said the overall threat level to Israel had decreased significantly. He criticized what he described as the military's "wasteful" use of reserve duty days, suggesting that the defense establishment must be more efficient in its use of resources.
