Israel’s Finance Ministry warned Wednesday that the ongoing war with Iran is costing the country’s economy an estimated NIS 9.4 billion ($3 billion) each week as long as strict nationwide limitations on economic activity remain in effect.

In a letter sent Wednesday to Home Front Command chief Maj. Gen. Shai Klapper, Finance Ministry Director General Ilan Rom urged that some of the restrictions be loosened to allow a gradual and partial reopening of workplaces and businesses as early as Thursday. When approached by The Times of Israel, the IDF Home Front Command declined to comment on the request.

Rom stressed the need to balance security concerns with the country’s economic stability. “There is no dispute about the need to preserve a defense policy adapted to the security situation, but at the same time, shutting down the economy on a broad scale carries heavy economic costs,” Rom cautioned.

“We need a solution that addresses both the security needs of the Home Front and the needs of the economy, after two and a half years in which the economy has been paying a heavy economic price in light of the increase in security needs and the repercussions of the [Hamas] war,” he said.

The current restrictions were imposed after Israel and the United States launched coordinated strikes against Iran on Saturday, prompting retaliatory missile attacks from Tehran. In response, the IDF’s Home Front Command introduced nationwide emergency directives banning public gatherings, halting educational activity, and closing most workplaces aside from essential services. The rules also limit commuting to work, require many employees to work remotely, and keep schools closed.

Following a new security assessment on Monday as the conflict continued, the Home Front Command decided to extend the restrictions across the country until Saturday night.

In his letter, Rom asked Klapper to downgrade the alert status from the current red level — which allows only essential activity — to the orange level, which would permit limited economic operations. According to the Finance Ministry, the red-level restrictions are responsible for the estimated weekly economic loss of NIS 9.4 billion, factoring in school closures, workplace shutdowns, and the widespread mobilization of reserve soldiers.

Under the orange alert level, workplaces and economic activity would be allowed to resume on a limited basis as long as employees remain close to protected spaces, though schools would remain closed.

“n their workplaces and make it clear to employees that the door is open if they want to come back,” said Manpower Group Israel CEO Dror Litvak. “This is not a move to ignore the security situation, but rather an adaptation to it.”

“From the perspective of employees, work is both economic security and a psychological anchor,” Litvak said.

Rom noted that if the country moves to the orange alert level, the expected weekly economic damage would drop to roughly NIS 4.5 billion ($1.5 billion), less than half the losses incurred under the stricter red-level restrictions.

“This policy will enable the expansion of economic activity while maintaining Home Front security, in a manner that meets both economic and security needs,” Rom remarked.

“The cost that the economy is required to absorb as part of the activity under the orange alert level is expected to have significant economic implications, but we believe that it reflects a balance that is necessary in the current reality, and allows for the minimum necessary economic activity while maintaining required security restrictions,” he added.

{Matzav.com}