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Israel faces NIS 100 billion price tag for Gaza City plan
An economist estimates the plan could cost up to 100 billion NIS, with implications for debt and living standards.
An economist warns a Gaza City seizure could cost Israel up to 100 billion NIS, with wide effects on debt, taxes and living standards.
Israel faces NIS 100 billion price tag for Gaza City takeover
A Hebrew University economist says conquering Gaza City could cost 25 to 50 billion NIS upfront for mobilizing reserve forces and relocating up to 1 million civilians. The total price could rise to about 100 billion NIS if the operation lasts longer and trade is affected.
The plan would strain the government budget and could force higher taxes or a larger deficit, potentially reducing spending on education, health and infrastructure.
Key Takeaways
"I am very concerned the economy cannot sustain such a huge blow for a long time"
Klor on long term economic resilience
"To relocate 1 million people Israel will need tents and sustained humanitarian support"
Logistics of civilian relocation
"Every shekel paid in interest is a loss for education and roads"
Debt service impact on public spending
"This could trigger a snowball of divestment and business flight"
Investor reaction risk
Beyond the numbers, long term risks are clear. A surge in defense spending and possible international backlash could undermine investor confidence and slow recovery.
The piece also asks readers to weigh short term military aims against economic health in the years ahead. A prudent path would protect essential services and support diversified growth.
Highlights
- I am very concerned the economy cannot sustain such a huge blow for a long time
- To relocate 1 million people Israel will need tents and sustained humanitarian support
- Every shekel paid in interest is a loss for education and roads
- This could trigger a snowball of divestment and business flight
Significant economic and political risk from Gaza City plan
The proposed Gaza City operation carries budgetary pressure, potential downgrades and divestment risk. It could affect taxes, deficits and public services.
The coming weeks will test economic resilience and political will in the country.
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