War with Iran to cost Israel USD 3 billion a week under current limitations: Finance Ministry

Jerusalem, Mar 5 (PTI) The ongoing war with Iran could cost Israel an estimated NIS 9.4 billion (USD 3 billion approximately) per week under current restrictions on economic activities, the Israeli Finance Ministry has warned.

"In a letter sent to the Home Front Command chief, Maj. Gen. Shai Klapper, Finance Ministry Director General Ilan Rom asked to ease restrictions to allow for a gradual, partial reopening of businesses and workplaces as early as Thursday," the Times of Israel reported.

“There is no dispute about the need to preserve a defence policy adapted to the security situation, but at the same time, shutting down the economy on a broad scale carries heavy economic costs,” Rom warned.

“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,” the top Finance Ministry executive reportedly said.

Soon after Israel and the US launched their joint offensive against Iran on Saturday morning, the Israel Defence Forces’ (IDF) Home Front Command issued nationwide guidelines prohibiting all gatherings, educational activities and workplaces, except for essential businesses.

The guidelines limit travel to work, encourages work from home, and has instructed educational institutions to be shut down.

On Monday, following fresh assessment amid the conflict with Iran, the Home Front Command extended nationwide restrictions until Saturday night.

Rom asked Klapper to shift Home Front Command restrictions from allowing only essential activity to allowing limited activity, known as the orange alert level, instead of the current red level.

Under the current restrictions, the weekly loss to the economy is estimated at NIS 9.4 billion, taking into account the closure of educational institutions, workplace prohibitions, and mobilization of reserve soldiers, the Finance Ministry was quoted as saying.

Under limited activity restrictions (orange level alert), workplace and economic activities are permitted, subject to close proximity to protected spaces, while educational institutions remain closed.

Rom is said to have emphasised that the weekly damage to the economy under limited activity restrictions is estimated to be about NIS 4.5 billion (USD 1.5 billion), less than half the cost of activity under the red level.

“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 executive said. PTI HM GSP GSP