What Israel must understand: Europe is not the world. And Israel needs a free market.

With somewhat unfortunate words, Prime Minister Netanyahu first announced the move toward a self-sufficient economy – due to Israel’s growing isolation from Europe, according to PM Netanyahu – only to then retract this move after harsh criticism.

Later PM Netanyahu claimed it referred only to weapons production. Israel must become self-sufficient in this industry. Agreed. But the way to adapt to a closed economy is wrong, an impass, the death shot for Israel.

The need for change to urgently establish a self-reliant arms ecosystem was understood in late 2024. In January 2025, a rather modest funding program of around NIS 1 billion was established. Too late, too little. Israel’s biggest enemy is procrastination and delay out of fear of making clear-cut decisions. Again.

Apparently, now it’s understood. Maybe. A strong-voiced announcement was made today to establish an autonomous arm ecosystem. Yes, Israel must be self-sufficient when it comes to weapons production. No doubt.

In all other areas, however, Israel should radically and quickly open its market to the USA and friendly states, like Argentina, Hungary or Papua New Guinea. Conversely, a boycott of European, Russian, and Chinese products should be implemented. The fact is that Israel has with those three hostile blocs a massive trade deficit. That’s insane. If Europe wants to change this, OK! But after a decade of insane deficit and political blackmail, Israel must stop this.

This also includes abolishing Israel’s absurd import monopolies and restrictions, liberalizing the Israeli market, streamlining laws, and eliminating special taxes that would penalize the purchase of foreign products.

For example, while the import tax on US cars is technically 0 percent, if you buy a US car, you’ll be charged an 80% tax. This is trickery that has rightly angered the US. Currently, Israel feels more like a socialist economy and state.

That must change. Yes, of course, this calls for the rule of the elected ones. And not an unelected deep state which structurally shields and profits from this socialist styled economy. It’s obvious that some of the elites are not happy with market liberalisation, free imports and a free market with real competition, which presupposes free speech.

Israel has a decades-old, massive trade deficit with the hostile EU, Russia, and China. However, there is, de facto, no product that Israel cannot import from the US, Argentina, Hungary, or Papua New Guinea.

It is downright absurd that the US has a trade deficit with Israel. This must end. An open market economy will also massively reduce the cost of living.

So what have European states announced? Not much, because Brussels seems to increasingly understand that they are shooting themselves in the foot.

From 2013 to 2023, the EU exported €322 billion to Israel and generated a trade deficit of around €130 billion for Israel. Goods that can all be replaced by products from the USA. So, the EU will lose, the USA and Israel gain., What are we waiting for? Europe is not the world.

Israel needs self-sufficient national weapons production, but a free market economy that is closely tied to the United States. Bold steps are needed which are currently not on the horizon.