Critical blow to the Israeli economy due to the Gaza war.
News One reported in a report published this morning on Tuesday that a very tense meeting held on Monday (yesterday) in the Knesset Finance Committee presented a very dark picture of the impact of the prolonged presence of the reserve forces in the war on the labor market and the business sector, and consequently on Israeli society.
At this meeting, the Industrialists Committee and several other associations, in the presence of Knesset members from all factions, presented very worrying data regarding the severe losses suffered by manufacturers, which has led to layoffs and the bankruptcy of a large number of companies.
The report of this Hebrew-language media outlet continues; In this meeting, which was held at the request of several Knesset members, the representative of the Israeli Ministry of Finance also revealed in an unprecedented report: “The annual costs of the reserve service are about 30 billion shekels, to this amount will be added the damages that must be paid to the military, and this means that the continuation of the war will force Israel to lose 50 thousand shekels per month for each employee who is called up for reserve service. At the moment, we are talking about 300 thousand reserve forces who must be in service for at least 2 months, and this indicates the depth and extent of the financial and economic losses that Israel is suffering from this war.”,
This is while industry activists also spoke of the bankruptcy of industrial companies and the collapse of economic projects due to the call-up of their workforce to reserve service, adding: “Israel will suffer losses from this war for a long time. Today, a situation of uncertainty has engulfed industries, other companies are unable to fulfill their obligations. They do not have previous schedules, they fail in their planning and significantly lose their contracts.”,
In this regard, Vladimir Bilyak, a member of the Israeli Knesset, strongly criticized the performance of the Israeli cabinet in dealing with the war and emphasized; “The fact that the Israeli cabinet pays attention to the reservists is a big lie, 41 percent of the reservists were fired after or during their mission and were forced to leave their jobs, the budget allocated to help the reservists is not at all significant, it is better to share the burden of this responsibility more fairly instead of distributing donations or increasing leave.”