DM Katz unveils $113 billion defense spending plan, says Israel must produce its own weapons

Defense Minister Israel Katz said that Israel must be prepared for “security, industrial, technological independence” during a speech to participants in the Defense High-Tech Conference, sponsored by Ynet News and Yedioth Ahronoth, on Tuesday. 

Katz said that even a country as developed as Israel “can never produce everything, invent everything, prepare for everything.” 

Referring to the recent war in Gaza, the defense minister said it posed numerous challenges, including the growing number of global conflicts that have intensified competition for resources, as well as embargoes imposed by some nations.

“Everyone is competing for resources – from the most basic munitions to the most sophisticated systems,” Katz explained. “The result is that when you are in a campaign and need tank shells and artillery, you find yourself competing with other actors.” 

As a result, he said, the government concluded that the nation must “produce as much as we can; Israel always needs to be able to defend itself, by its own forces, alone against any threat.” 

Katz said the initial phase of the plan, which he called “Magen Israel” [Hebrew for Shield of Israel], will involve an investment of NIS 350 billion (approximately $113 billion) over the next decade in addition to the regular defense spending. 

Recognizing the significant challenge this will create for the state budget, Katz said, “This plan is based on great faith in the economic power of the State of Israel.” 

“There is no security without an economy, and no economy without security,” he added. 

He likened the initiative to the government assistance provided to businesses during the coronavirus period, which he said led Israel’s economy to take what he described as “the biggest leap in the world after Corona.”

Katz also said Israeli defense firms have already seen a rise in interest and orders, which he attributed to “the image of the State of Israel as a strong state – a state that knows how to stand against challenges, knows how to win campaigns against distant and close threats.”

While calling the United States “a great ally,” the defense minister also acknowledged disagreements, particularly during the administration of former U.S. President Joe Biden, and with the shift in the political climate in Washington.

Despite the current Memorandum of Understanding (MOU), Katz said, the government has concluded that “we need to prepare already for a reality that at a certain date the funding of the American aid plan will no longer exist.” 

He also noted that this change could lead to greater partnership with the U.S. in the defense sector. 

Katz pointed to the ongoing security challenges facing Israel in Lebanon, Syria and the Gaza Strip. Just as Israelis have called for the return of the hostages “until the last one,” he said, the IDF is working “night and day” to dismantle Hamas terror group's tunnel infrastructure “until the last one.”

Israel will not move from the Yellow Line until Hamas “is disarmed from its weapons,” he added.