A report in the French magazine Le Point said that the decision to exclude Israeli participants from the Eurosatory defense exhibition – along with the cancellation of contracts by companies against the backdrop of calls for a boycott – caused a shock in Israel.
Writer Daniel Kriegel added in his published report that the exclusion of Israeli exhibitors from the Eurosatory exhibition, which was announced on May 31, caused a strong shock in Israel because this step was not expected at all.
Aside from its political-diplomatic dimension, this issue forms part of Israel’s increasing isolation within the international community, according to the French magazine.
The matter, of course, according to the magazine, relates to the Israeli war on the Gaza Strip, and the tragic human losses it caused on the Palestinian side, amounting to no less than 35,000 martyrs, without forgetting the massive destruction and displacement of the population, who were displaced several times.
As the only official in the eyes of a public opinion that had become deaf to Israel’s military and political arguments, the country very quickly faced a cultural and academic boycott, and today this rejection of Israel is also affecting its economy.
Investors are increasingly cautious
The writer pointed out that this aspect of the war is more weighty, because it was not expected, and given the long duration of military operations, it cannot be controlled or estimated in numbers. On the other hand, the affected sectors can already be identified, starting with foreign investments.
According to the latest report issued by the Israeli Central Bureau of Statistics, foreign investments decreased in the first quarter of this year by 55.8%, which is the lowest level since the last three months of 2021.
The writer stated that the matter is not related to financial investments, especially high technology. In this area, we cannot talk about a boycott, but rather about the desire to stay away from the limelight, to make relations with Israel more secret. But it is also about reducing risk by avoiding investing in a country that is at war and also faces recruitment problems.
Technology field
The writer added that more than 20% of the reservists who participate in the war on Gaza are employees in the field of advanced technology, and their absence for several months has greatly complicated the management of many startup companies, and to avoid having to cancel operations or undermine their development, more Companies lay off their Israeli employees to hire foreigners.
For his part, Micah Kaufman, co-founder and general manager of Fiverr, which employs 770 people in Israel, warned in a letter to Prime Minister Benjamin Netanyahu and the ministers of finance and economy, against the flight of high-tech jobs abroad, stressing that “it has become very difficult for Israeli companies to provide The necessary funds are due to pressure on investors to sever their relations with Israel.”
The writer quoted Eyal Benno, founder and partner of the venture capital fund, as saying, “Americans feel that investing in Israel has become dangerous. They will not tell you that directly. But they will ask you questions about the risks involved. Of course, if you are Jewish and want to help Israel, “You will be invested and if you are not, this adds further risks to those already inherent in any financial investment in this sector.”
Continuous withdrawals
According to the writer, the second black point is in the field of large companies that have already been established in the country or are in the process of being established. There are 3 examples of withdrawal that have occupied public opinion in recent weeks.
- Intel announced about 10 days ago that it was suspending the expansion project of its semiconductor factory in Kiryat Gat, and as a result, the additional investment, amounting to $15 billion, that was publicly promised last December, disappeared.
This represented very bad news for Israeli economic circles, as the American microprocessor giant was founded in Israel 50 years ago, and over the years it has occupied one of the leading positions in the development of innovative industries, and in terms of the size of its assets, Israel is the third country in which the company has settled. Intel after the United States and Ireland.
- The writer pointed out that there were two less media-covered, but equally important, decisions that caused a reaction from the business world. The first was the British “Bret A Mange” chain canceling the franchise contract signed last year with the Israeli “Fox” retail group.
According to Fox, the leaders of Pret à Mange had invoked a situation of “force majeure” due to the war, which affected the ability to carry out the initial procedures necessary for any launch of an activity based on a commercial agreement.”
For economic analyst Sami Peretz, this may be a roundabout method. “So far we have lived well without activity in Israel, and there is no reason to bother our Muslim clients in Europe.”
In recent months, the chain has already come under pressure from pro-Palestinian activists with hostile demonstrations outside its London branches and petitions calling for a boycott.
- As for the other case, it concerns the global fast food chain “McDonald’s”. In response to the boycott that lasted for months by pro-Palestinian movements or some Muslim residents, its global sales witnessed a noticeable decline. Therefore, in April, it distanced itself from Israel by purchasing the commercial franchise granted. 1993 to Israeli businessman Omri Badan.
Decreased exports and credit ratings
The writer explained that the list of difficulties does not stop there, as “we must also take into account the decline in exports by 33% so far, and this means the loss of many opportunities, and the matter may become worse if Europe carries out its threat to cancel or suspend the association agreement with Israel.” “.
Finally, the downgrade of the credit rating by Moody’s and Standard & Poor’s cannot be ignored, and both American agencies have attached the rating with the phrase “negative expectations.”
According to a poll conducted in France between February 2020 and February 2021, the percentage of sympathy for Israel rose from 23% to 34%, that is, a jump of more than 10 points in one year, and today we are far from that, as the image of Israel is no longer as popular as it is. , says the writer.
