Sachs: ‘The Israeli economy must remain open; no to Netanyahu’s proposals’
Ofer Sachs, director of the Israel Manufacturers’ Association, speaks
“Israel must remain an open economy. We are strongly opposed to self-sufficiency. We must rebuild our relations with European countries, put an end to our international isolation, and gradually resolve the outstanding issues.” Ofer Sachs knows Italia well, having served as Israel’s ambassador there from 2016 to 2019. In a few days’ time, he will take up the post of Director-General of the Israel Manufacturers’ Association. From his new office in Tel Aviv, he explains to *Il Sole 24 Ore* the challenges facing the Israeli economy during a particularly complex period.
Netanyahu has called on Israel to prepare for new sanctions and a reduction in US aid, proposing a self-sufficient economy and a cryptocurrency system. Can Israel do without global markets?
I hope the Prime Minister used this argument during the election campaign. Netanyahu championed globalisation, an open economy and integration into the Western economy. I am strongly opposed to this statement. The growth of the last twenty years is linked to our ability to trade and be competitive. The Bank of Israel has reacted strongly. We in industry have done the same. Although Israel will face difficulties, this is not the solution.
The Israeli economy has weathered the wars. But with seven fronts open and reservists away from work for up to 400 days, how much longer can it hold out?
Over the last twelve months, the stock market has risen by almost 30 per cent, and by 16 per cent since January. Despite the seven ongoing conflicts, industry and high-tech sectors continue to grow. However, the costs of the war will affect growth. I am confident in our ability to recover. The next government will have to keep costs under control. The Ministry of Defence will have to use every shekel efficiently.
