Saturday, August 24, 2024

Calcalist: A Multi-Front War Will Lead to Economic Collapse in “Israel”

By Al Ahed Staff, Agencies

Calcalist: A Multi-Front War Will Lead to Economic Collapse in “Israel”

The “Israeli” website Calcalist believed that the entity is at a crossroads in the face of geopolitical and military developments since the assassination of Islamic Resistance leader Fouad Shokor in Lebanon and Hamas leader Ismail Haniyeh in Iran.

The report said: “Everything is linked to each other: The end of the war in Gaza, the return of the captives, Hezbollah's strike on the north and perhaps also Iran's strong response.”

“It appears that ‘Israel’ is facing two extreme scenarios: The first is a truce scenario and the second is a war scenario that may turn into a full-scale, multi-area war,” it added.

According to the website, these two opposing scenarios have very large implications for “Israel” in terms of growth, deficits, debt, employment, the status of high-tech “Israeli” industry and every possible economic aspect.

“It is not certain that ‘Israel’ has prepared for the worst-case scenario, if it is generally possible to prepare for it. However, we can try to understand where the ‘Israeli’ economy could deteriorate,” the Calcalist report added.

Prof. Tzvi Eckstein, former Bank of “Israel” deputy governor said, “Regardless of Sinwar's fate, what matters is a ceasefire and potential prisoner exchange.”

He further stated, “The scenario of an Iranian and a Hezbollah threat in which all airplanes stop flying to “Israel” is a terrifying one, there are no assumptions about it.”

He continued: “We are talking about a scenario of rockets on the north up to Haifa for a month and a half.”

He also noted that in this scenario there will be a decline in output to 2.5 percent, while output debt reaches 75 percent of GDP, and a significant decline in “Israel's” credit rating.

The scenario that worries Eckstein – and what should worry all “Israelis” – is the multi-front conflict, which he describes the “horror scenario”.

According to him, the name is intentional “because it involves rockets on ‘Tel Aviv’ and a flight stoppage.

“This is a scenario from which it is not clear how we will emerge. It's a dangerous crossroads. The problem is that it's not clear what Prime Minister Benjamin Netanyahu wants. It's not clear where this government is taking us,” he concluded.

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