Israel: “The assumption that sanctions could influence us was a big mistake” | EUROtoday

It was simply beginning to get gentle over Berlin when Israel’s Economics Minister Nir Barkat welcomed him into his room on the Waldorf Astoria Hotel. The 66-year-old Likud politician is a widely known persona: he was a paratrooper, IT entrepreneur and mayor of Jerusalem for ten years. After the interview early within the morning, he has to go to the airport instantly; there is a vital vote on the state funds in Israel.

WORLD ON SUNDAY: Minister, after the phobia of October 7, 2023, many forecasts sounded bleak: a protracted and costly battle would wreck Israel. But the alternative occurred. This yr the economic system is anticipated to develop by 4.7 %. Germany can solely dream of that. How is that attainable?

Nir Barkat: The atrocities dedicated by Hamas on October 7 shocked us; we now have not seen something prefer it because the Holocaust. But we confirmed that we may flip issues round and actually change the area. The Iran-led “Axis of Evil,” which goals to accumulate a nuclear bomb and 1000’s of ballistic missiles, has weakened in methods few would have imagined attainable earlier than the battle. Hezbollah in Lebanon is not the identical, the terrorist infrastructure within the Gaza Strip has been destroyed. We have shifted gears, dramatically lowering the threats and growing the alternatives. As a consequence, increasingly more international locations are taken with good commerce relations with Israel. In this fashion we strengthen the axis of peace.

WAMS: What is it like in Israel?

Boats: Last yr, lenders invested round $16 billion in Israel’s tech sector, largely in cybersecurity and AI functions. Our firms continued to function through the battle, regardless that workers needed to be a part of the military. The high-tech sector has at all times delivered on time. The unemployment charge is under three %. There is a big demand for our abilities – and we love sharing our information with mates.

WAMS: What are the stipulations for such a robust arms business?

Boats: You should know your enemy precisely. We have proven that the Mossad and our particular forces are very properly knowledgeable, regardless that we have been sadly taken abruptly on October seventh. Understanding the risk posed by Iran and its proxies like Hezbollah in Lebanon made us assume exterior the field years in the past. We have developed weapons for protection and offense which can be second to none. The Arrow 3 protection system, for instance, which intercepts ballistic missiles exterior the Earth’s ambiance and is now additionally being utilized by Germany as a part of an settlement.

WAMS: What does Germany have to supply in return?

Boats: Friendship and enterprise. On my present go to to Germany alone, 25 Israeli entrepreneurs accompanied me, most of them from the cybersecurity sector. I’ve met Economics Minister Katherina Reiche 5 instances since she took workplace; we now have developed a deep mutual understanding of how our economies can work collectively. This yr there can be greater than 100 conferences of delegations in Germany and Israel, which is a big improve in cooperation. I wish to thank Minister Reiche for this friendship, as a result of sadly we had issues with some international locations in Europe within the final two years of the battle. But Germany was rock stable throughout this tough time. I see Germany as a possible hub for Israel, not just for the native market however for the European market as an entire.

WAMS: In the autumn, the EU threatened sanctions in opposition to Israel and criticized the humanitarian state of affairs within the Gaza Strip and settler violence within the West Bank. Prime Minister Benjamin Netanyahu later mentioned in a speech that Israel’s economic system should put together for tough instances and grow to be self-sufficient, just like the fortress of Sparta in historic instances.

Boats: Let me put this into perspective. A yr after the beginning of the battle in Gaza, Turkey determined to cease commerce with Israel, an annual quantity of seven billion {dollars}. Do you understand what we did? We bypassed Turkey. Private importers and exporters have opened up new markets. There was no break-in for us. The solely nation that suffered ultimately was Turkey itself. When some European international locations tried to place strain on us, we mentioned to ourselves: an important factor is that we don’t deviate from our plans. When we now have to decide on between our security in Israel and the attainable lack of a buddy, we at all times select our life in Israel. The assumption by some European international locations that sanctions may affect us was a giant mistake. My message is: We are combating in opposition to jihadism and the “Axis of Evil”, we’re combating not solely our battle, but additionally yours. We count on help for this. If we do not get it, we’ll go someplace else. Europe is in search of a standard place. Many international locations in Asia, however, clearly say that they wish to do enterprise with us.

WAMS: Prime Minister Netanyahu has additionally introduced that Israel ought to grow to be largely impartial of arms provides from the USA inside ten years. A change in technique as a result of Israel can not depend on monetary and army assist from Washington in the long run?

Boats: Basically, we now have to make sure that we guarantee our protection independently. 80 % of the merchandise from our weapons industries are at the moment exported. If we improve capability, it will not be an issue to provide what we want ourselves.

WAMS: With the Abraham Accords, Israel normalized relations with many Arab international locations. One situation, nevertheless, was that Israel avoided annexing elements or all the West Bank. That’s precisely what you known as for in June final yr as a part of an initiative – would not such a step largely isolate Israel internationally?

Boats: I’m taken with a very completely different method that would finally result in an answer to the Middle East battle. For this I’ve to return a bit of. I used to be mayor of Jerusalem for a very long time. 350,000 Arabs stay on this metropolis and I’m aware of their tradition. In Arab society, tribes are in cost, in Judea and Samaria (Israeli time period for the West Bank; editor) there are about seven. A profitable type of authorities should subsequently be based mostly on tribes, as within the United Arab Emirates. So I welcomed the sheikhs, the heads of the households from the Hebron area, into my residence many instances. After just a few conferences, they despatched me a letter of intent. It says that they wish to separate from the Palestinian Authority and be a part of the Abraham Accords. They acknowledge the Jewish state, wish to cooperate and do enterprise. It is fascinating that the Jewish settlers in Hebron additionally help this method; they’ve identified the sheikhs for many years. Half 1,000,000 individuals stay in Hebron, which might be a critical pilot venture for the way forward for Judea and Samaria and likewise Gaza.

WAMS: The demand for a Palestinian state is formally thought-about non-negotiable within the Arab world. How do different Abraham Accords companions reply to this concept?

Boats: The Abraham Accords international locations help our struggle in opposition to the phobia of the Muslim Brotherhood, which can also be banned in most Arab international locations. But it is best to ask the leaders of those states your self, I do not wish to put something into their mouths. What is essential is that native Arab leaders can take their destiny into their very own fingers sooner or later. They not need terrorists from different international locations to find out their destiny. Who ought to object? Because one factor is totally clear: there can be no Palestinian state with our authorities. But the Emirates mannequin generally is a resolution. Arab leaders should determine whether or not they wish to acknowledge Israel and do enterprise, then their territory can grow to be like Dubai. Or they depend on terror in opposition to Israel, then issues find yourself like in Gaza. After October seventh there can be no extra shades of grey.

WAMS: Israel has massive fuel reserves; you lately made a cope with Egypt for provides. What does this imply politically?

Boats: First of all, the contract covers $35 billion, half of which the state collects as taxes. That’s some huge cash. Another objective is to stabilize relations with Egypt, with which we now have had peace for 48 years. In the longer term, we will now additionally supply Europe to provide it with power. It was a giant problem to discover ways to extract fuel from the Mediterranean. But now we all know find out how to do it. That’s what it is about: The abilities in our heads are our true belongings, they decide our future.

WAMS: In the civilian high-tech sector, nevertheless, many well-trained individuals have left Israel lately, the industries report. Some as a result of they do not really feel protected sufficient within the nation, others as a result of they do not agree with the federal government’s course. Will this be an issue for Israel?

Boats: No, migration at all times happens after intervals of battle and violence. It is a free society, and general the Israeli ecosystem could be very enticing for progressive entrepreneurs. We have 10,000 start-ups per ten million inhabitants. These optimistic numbers will proceed to develop.

Philip Volkmann-Schlucksenior editor within the overseas coverage division, stories for WELT on worldwide politics with a specific concentrate on the Middle East, China and Southeastern Europe.