Israel will need to shift to a wartime economy to cover the huge costs of a strike on Iran’s nuclear project and an all-out war. Senior military and political officials suggest that the Israeli public must prepare for a profound change in lifestyle and economic policy ahead of a regional conflict.
An assault on Iran will likely trigger a broad military clash with Tehran’s terror armies in the Middle East. This multi-front war will be waged across the region and cost tens of billions of dollars, according to a report by veteran journalist Sever Plocker in Yedi’ot Aharonot daily.
The primary task of Israel’s next finance minister will be to prepare the economy for war, the report says. This will require a dramatic adjustment of national budget priorities to pay for the war effort.
The IDF is already asking for an increase of about $3 billion in its 2023 budget, the report says. If approved, Israel’s total defense budget for the year will hit nearly $30 billion. However, this figure does not include the enormous expenses of a regional war on top of the annual funds.
Notably, a strategic agreement with the US calls for massive American aid to Israel in case of an all-out war. The deal includes a US pledge to help rebuild damaged Israeli infrastructure such as seaports, roads, and energy facilities.
Israel invests billions in weapons
Meanwhile, Israel is investing billions to increase its arsenal of advanced munitions and air defense interceptors. The government has already approved extra defense funds of almost $3 billion for classified purposes at the end of 2021.
The IDF also doubled its investment in technology to bolster operations against the Iran axis in nearby and remote theaters, the Yediot report says.
Israel is speeding up its preparations for a large war as Iran’s uranium enrichment reaches dangerous levels. The IDF intelligence chief warned this week that the Iranians have made major progress toward producing weapons-grade nuclear materials.