Jerusalem: The ongoing war with Iran could cost Israel about NIS 9.4 billion (approximately USD 3 billion) each week under the current restrictions on economic activity, the Israeli Finance Ministry has warned.
According to a report by The Times of Israel, Finance Ministry Director General Ilan Rom has written to Shai Klapper, the chief of the Israel Defence Forces Home Front Command, urging authorities to ease restrictions and allow a gradual, partial reopening of businesses and workplaces as early as Thursday.
Rom stressed that while maintaining a defence policy suited to the prevailing security situation is essential, shutting down the economy on a broad scale carries significant economic costs.
“We need a solution that addresses both the security needs of the Home Front and the needs of the economy, after two and a half years in which the economy has been paying a heavy economic price in light of the increase in security needs and the repercussions of the war,” he reportedly said.
Soon after Israel and the United States launched a joint offensive against Iran on Saturday morning, the Home Front Command issued nationwide guidelines banning gatherings, educational activities and most workplace operations, allowing only essential businesses to function.
The restrictions limit travel to work, encourage employees to work from home and require educational institutions to remain closed.
Following a fresh assessment of the situation on Monday, the Home Front Command extended the nationwide restrictions until Saturday night.
Rom has asked Klapper to shift the restrictions from allowing only essential activity to permitting limited activity — known as the orange alert level — instead of the current red level.
Under the present restrictions, the Finance Ministry estimates that the economy loses around NIS 9.4 billion each week due to the closure of educational institutions, workplace shutdowns and the mobilisation of reserve soldiers.
However, under the limited-activity “orange level” restrictions, workplaces and economic activities would be allowed subject to proximity to protected spaces, while schools would remain closed.
Rom said the weekly economic damage under the limited-activity restrictions would fall to about NIS 4.5 billion (around USD 1.5 billion), less than half the losses incurred under the current red-level restrictions.
“This policy will enable the expansion of economic activity while maintaining Home Front security, in a manner that meets both economic and security needs,” the Finance Ministry official added.
With PTI inputs