Publications

Sharing the responsibility for rebuilding the Gaza Strip with moderate regional actors, primarily Saudi Arabia and/or the United Arab Emirates, could be a possible solution for the deadlock Israel is facing regarding the war in Gaza. However, the Israeli government is not responding positively to these countries’ demands to present a “day after” plan for the Strip, which is being posed as a prerequisite for sharing the burden. Their willingness to do so is also doubtful due to economic pressures and concerns that investments might...

We invite you to look and learn about the fallen through this annual memorial project—to once again recognize how, in the microcosm of the people’s army, the character of its fallen reflects the society itself.

The risks to Israel’s economy have risen in recent weeks, along with the likelihood of a financial crisis in Israel. This is due to three events that occurred simultaneously: the end of the ceasefire in Gaza and the resumption of fighting, the approval of a problematic state budget for 2025, and political instability reflected in the dismissal of gatekeepers and the return of the judicial overhaul. All these raise many questions regarding the fiscal responsibility of the Israeli government in general, and the financing of the war in...

Donald Trump assumed office as US president with a flurry of action. In these first weeks, his administration launched a series of unprecedented actions aimed at reshaping the United States through sweeping constitutional, political, and diplomatic changes. These efforts also sought to redefine the country’s role on the global stage by altering the terms of alliances and agreements that for years had been pillars of the liberal order, with the US at its center. Many of these measures could directly affect the State of Israel—some...

This article discusses the Nagel Commission report on the security budget and force buildup, which was recently submitted to the prime minister, and compares it to reports issued by previous commissions that have addressed this issue (the Brodet Commission and the Locker Commission). The analysis highlights flaws in the broad mandate given to the commission, its timeframe, the validity of some of its conclusions—both in terms of concept and force building—as well as its omission of critical fundamental issues. While adopting the...

The 2025 state budget, set at NIS 607 billion, was approved by the government on November 1 after contentious debates within the coalition. The government aimed to present a budget that would support the country’s growing security needs and the populations affected by the war while also reducing the deficit and encouraging economic growth. In practice, the approved budget should meet Israel’s security needs, but it is doubtful whether it will address the country’s broader economic needs. The unwillingness to significantly cut...

In the tenth month of the Swords of Iron war, Israel stands at a crossroads in terms of the continued fighting in the Gaza Strip and the broader campaign against Iran and the “Axis of Resistance,” which are directly involved in the conflict. Every decision about the future will undoubtedly have significant economic consequences, especially considering that the projected budget deficit for 2024 is expected to significantly exceed the forecast underlying the current state budget. This is further compounded by the impact of the war on...

This article examines the validity of the claim that granting work permits to Palestinian workers from the West Bank creates a security risk for the citizens of Israel. The analysis is based on an original and new database regarding the 153 Israelis who were murdered within the Green Line (the demarcation line from 1949), including East Jerusalem, from January 1, 2007, to October 6, 2023. The data show that in these 17 years, three attacks were conducted by terrorists with work permits, resulting in the deaths of four people....

Israel’s decision to bar entry to over 140,000 Palestinian workers from the West Bank due to the outbreak of the war with Hamas and concerns over their allegiance with Hamas heavily strains the Palestinian economy and the stability of the Palestinian Authority. Moreover, this move also affects the Israeli economy, which has not yet found replacements for these workers. Particularly the construction and agriculture sectors, heavily dependent on Palestinian labor, are in a state of crisis. The rise in anti-Palestinian sentiment...

One of the encouraging phenomena in Israeli society during the ongoing war in Gaza is the stability and mutual restraint that have so far characterized relations between Jews and Arabs. This is especially noteworthy given the internal tensions inherent in these relations, and given the fierce fighting in the Gaza Strip against Israeli Arabs’ fellow Arabs. The restraint of Arab society lies in the fact that the overwhelming majority see themselves as an integral part of Israeli society and seek to integrate in the country in all areas...

The war between Israel and Hamas is expected to have a significant negative impact on the Israeli economy. Estimates place the direct cost of the conflict (armament and mobilization of the reserves) and the indirect costs (population evacuation, reconstruction of the western Negev, interruptions to the manufacturing process, and reduced aggregate demand) at around NIS 200 billion. If these predictions are accurate, Israel would experience a 10 percent drop in GDP in the fourth quarter of 2023 and won’t experience any GDP per capita...

 To understand the economic implications of the political crisis in Israel, we should closely monitor the currency exchange rate and the performance of the local stock market. These indicators reflect, in real-time, the sense of the general public, specifically stock investors, and serve as a “financial seismograph” for understanding current events. As the chart demonstrates, since the beginning of the year a significant gap has emerged between the performance of the Israeli stock market and that of its counterparts in the...