Haaretz: Netanyahu's War is Draining Israel's Economy

An analysis published by the Israeli newspaper Haaretz paints a stark picture of the economic consequences of Prime Minister Netanyahu's sustained military operations since October 2023. The report, "Netanyahu is exhausting the Israeli economy with war," argues that the government's commitment to aggression on multiple fronts, from Gaza to Lebanon and Iran, is coming at an unsustainable financial cost.

The article highlights Netanyahu's plan to increase defense spending by 350 billion shekels (approximately $121 billion) over the next decade, alongside the estimated 350 billion shekels already spent on operations since October. The recent strikes against Iran alone are estimated to have cost 35 billion shekels ($12 billion). This cumulative expenditure, exceeding $133 billion according to the lowest estimates, is pushing Israel into a prolonged "war economy" that the nation may struggle to sustain.

Haaretz points out that despite a formal ceasefire with Lebanon, Israeli forces continue to operate in the country, while similar actions persist in Gaza and Syria. Reserve soldier costs alone are substantial, with an estimated 100,000 personnel currently under arms, far exceeding initial budget projections. The lack of a clear exit strategy from occupied territories further compounds the financial burden.

Beyond the direct economic costs, the analysis suggests that Netanyahu's "endless war" approach is eroding Israel's standing in the eyes of the American public. This decline in favorability, observed among both Democrats and Republicans, could have significant economic repercussions, including the potential loss of crucial U.S. military aid. The article implies that the Prime Minister's personal drive for conflict is jeopardizing the nation's long-term security and economic stability.