Prime Minister Benjamin Netanyahu has urged Israel to adopt an ‘autarkic’ economic strategy to withstand potential sanctions and boycotts, particularly in light of the ongoing Gaza conflict. His speech at the Finance Ministry’s annual accountant general conference in Jerusalem emphasized the necessity of reducing reliance on external markets and cultivating domestic industries, especially within the defense sector. Netanyahu’s remarks reflect a broader concern over the country’s economic resilience as international pressure mounts, with pro-Palestine activists and European leaders like Ursula von der Leyen advocating for measures against Israel, including the suspension of trade agreements.
Netanyahu’s call for self-sufficiency is framed within a context of heightened geopolitical tensions. The prime minister warned that Israel’s current economic model may not be sustainable amid the rising international scrutiny, and he underscored the importance of strengthening its defense industries as a critical component of national security. This push for economic autarky coincides with Israel’s substantial military spending, which has surged to 8.78% of GDP in 2024, nearly double the pre-2023 level. The Council on Foreign Relations notes that the United States has provided around $310 billion in military assistance to Israel since 1946, with the country receiving $3.3 billion in annual US military and security aid. This financial support, while crucial for maintaining military readiness, also highlights the potential economic risks Israel faces if such support is curtailed or if sanctions are imposed.
The international community’s response to the Gaza conflict has intensified, with the European Commission and its member states increasingly scrutinizing Israel’s actions and calling for measures to curb its influence. Ursula von der Leyen’s statements represent a broader trend of European leaders pressing for a more significant role in addressing the humanitarian crisis in Gaza. However, these calls for sanctions and trade restrictions are seen by Netanyahu as attempts at economic isolation, which the prime minister insists Israel must prepare to counter. The challenge for Israel lies in balancing its military and economic strategies to ensure long-term stability amid growing global pressure.