Settlers can't pay their bills as 'Israel's' multibillion war persists
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Israeli settlers are grappling with the economic consequences of their government's genocidal war on the Gaza Strip.
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A man checks the buses that were damaged following a rocket attack fired from Lebanon during the night, hours before the start of the ceasefire, in Kiryat Shmona, northern Palestine, on November 27, 2024. (AP)
Around two million Israeli settlers are facing difficulties paying their primary dues and bills and are grappling with the continuously deteriorating economic state as the war rages on for its 14th month, according to Israeli media.
Moody's downgraded "Israel's" sovereign credit rating to Baa1 from A2 in September, citing the escalating conflict in the region and concerns about long-term economic stability. Later in November, the agency maintained its negative outlook for "Israel", warning that further downgrades remain possible.
In addition to external risks, Moody's pointed to domestic political challenges, including proposed judicial reforms and attempts to exempt ultra-Orthodox Israelis from military service, as significant factors contributing to social tensions and economic uncertainty.
"In our view, the Israeli government is pursuing policies that add to already high social tensions in the country," the agency stated, noting that these dynamics could impact investor confidence and the country's economic growth prospects.
In October, Israeli Finance Minister Bezalel Smotrich acknowledged that the ongoing "war is the longest and most expensive war in Israel’s history", with direct costs amounting to approximately 250 billion shekels ($66.6 billion) so far.
He further emphasized that this figure is likely to increase, stating, "We will all feel the need to finance this war, and it will not be easy for us."
Read more: From lower ratings to higher deficits, Israeli economy in hot water
