Finance & economics | Staring down the barrel

Can Israel afford to wage war?

As the battle continues, costs are spiralling

Illustration of an Israeli coin balancing on a bullet
Illustration: Alberto Miranda
|Jerusalem

In the next few weeks Binyamin Netanyahu, Israel’s prime minister, hopes to gain final parliamentary approval for an emergency war budget. It includes more cash for settlers in the West Bank, as well as for religious schools, where teenagers study the Torah rather than science—part of an attempt to unite his fissiparous political coalition. And it also contains a startling break with the past. Everyday welfare spending (long generous in Israel, owing to its socialist foundations) will be slashed in order to fund the country’s armed forces. The military budget will almost double from 2023 to 2024. Israel’s unwritten social contract, which has for 70-odd years promised both a generous welfare state and a fearsome military, is under threat.

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This article appeared in the Finance & economics section of the print edition under the headline “Bullets v benefits”

From the March 9th 2024 edition

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