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PM Netanyahu warns: Israel is entering isolation, will need to adapt to a self-reliant economy

 
Israeli Prime Minister Benjamin Netanyahu speaks during a ceremony at the Ministry of Foreign Affairs in Jerusalem, September 15, 2025. (Photo: Itay Beit/GPO)

“Israel is entering a form of isolation,” Prime Minister Benjamin Netanyahu said Monday at the Finance Ministry’s Accountant General’s Conference, adding, “We will increasingly need to adapt to an economy that, in certain areas, has autarkic characteristics.”

"We may find ourselves in a situation where we are blocked not only in terms of research and development, but also in actual industrial production. First and foremost, we will need to develop our own capabilities to cope independently," he said.

According to the prime minister, "We are in a time when two issues that were under the surface have come to light after the war: First, an extremely negative impact on foreign policy in Europe, resulting from the unchecked immigration of significant and very militant minorities. This bends governments. It’s not just about Gaza – their core agenda is the elimination of Zionism and a radical Islamic ideology."

He continued: "I speak with European leaders – this affects them greatly, and some even admit it in private conversations. It results in sanctions on Israel and changes our international standing. The second issue: Enemy states, including Qatar, have invested massive sums to influence global discourse through social media. This is leading us into a kind of isolation."

The prime minister then added: "This situation threatens us with early signs of economic sanctions and problems importing weapons and weapon parts. We can emerge from this isolation, but we must invest heavily in countermeasures, particularly in online information warfare."

"The world is dividing into blocs, and we are in none of them. That creates an advantage when others want to isolate us. But we also have a scientific and technological edge that creates dependency and interest in cooperating with us," Netanyahu concluded.

Later in the day, Netanyahu stated that steps must be taken to increase investment in weapons manufacturing to avoid reliance on what he called “weak Western European leaders who surrender to extreme Muslim minorities in their countries.”

In a separate appearance before a gathering of American lawmakers, Netanyahu said, "We are committed, together with the U.S., to securing the release of all the hostages – both the living and the dead."

He also addressed the economic blockade he had warned about, adding, "Qatar and China are two countries imposing a blockade on us in terms of legitimacy – through new media and social networks."

Opposition Leader Yair Lapid responded saying, "Netanyahu’s statement that Israel is entering isolation and must adapt to an isolated economy is insane."

"This isolation is not fate – it's the result of the failed and misguided policies of Netanyahu and his government. They are turning Israel into a third-world country and aren’t even trying to change course. There is another way. Israel can once again be successful, admired, with a thriving first-world economy."

Liel Kyzer is a KAN 11 News correspondent.

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