Finance Minister Israel Katz persists in his firm opposition to a full closure • Most holidays fall on weekends, so the cost of the closure will also be high during the holidays • After that, the cost will skyrocket to NIS 6 billion a week
And you collapsed during your holiday:
NIS 12-15 billion - this is the immediate cost that the Ministry of Finance estimates to close in the three weeks of the holiday period.
This calculation does not include additional costs of a possible business collapse, unemployment benefits and return to employment plans.
The differences in assessments stem from the room for maneuver provided by the current outline for changes, in accordance with the discipline that citizens will discover and the change in the morbidity situation as a result of the imposition of the closure.
The economic impact of closure during the holidays will be particularly significant, as most holidays this year fall on weekends, meaning that during the week the economy was expected to operate similarly to normal weekdays, even if the volume of work was more limited.
If a closure is required even after the holiday period, as suggested by AMN, the cost will jump to NIS 6 billion per week, at least.
Another contraction to the economy
Finance Minister Israel Katz strongly opposes the imposition of a closure in its current form, as approved by the Corona Cabinet on Thursday and will be brought to the government's approval today.
The Ministry of Finance prefers to move to a policy of reducing activity, instead of completely shutting down, while adopting increased traffic light policy - according to which "green" areas where the morbidity rate from corona is reduced will continue to operate normally within various limits, while orange or red areas will have to operate under stricter limits.
When it comes to the education system, the Ministry of Finance supports studies as usual until the fourth grade in green areas.
As stated, this position of Katz and senior officials of his ministry is not accepted, in light of the rising morbidity that is increasing the burden on hospitals - the "doomsday scenario" for the prime minister that could lead to a surge in deaths and general loss of control over the plague, which could also result in more severe economic damage. Close now.
Following the decision of the Corona Cabinet, the shekel recorded another devaluation against the dollar, and it traded at NIS 3.45 as of Tuesday - a devaluation of about 3% within a week.
According to the Bank of Israel's forecast from last month, in the event of another closure, the Israeli economy will shrink by 7% by the end of the year - a decrease of close to NIS 100 billion in GDP.
The main industries that will be affected are exports (6.5%), fixed assets (8.5%) and private consumption, which is expected to fall by more than 10%.
The number of unemployed (including workers in the IDF) will be about 700,000, an increase of about 50% compared to the current situation.
Businesses will collapse
The chairman of the employers' and businesses' presidency and the president of the Manufacturers' Association, Dr. Ron Tomer, sent a letter to the prime minister on Friday, asking to meet with him before a final decision is made by the government to impose a full closure. "Businesses in Israel will not be able to carry another general closure." Tomer to Netanyahu.
"The expected government measures will be an unnecessary fatal blow, as aggressive measures can be taken to cut off the contagion chains without harming the economy, the economy, businesses and employed people in Israel! We will be happy to appear before the government and present our position, as this critical decision is unlikely to be made without understanding the implications."
Employers' organizations also call on the government not to impose a full closure.
"The fact that there is a proposal on your table to close businesses in Israel again is completely detached from the understanding of the unprecedented economic effects created by the first closure," the organizations addressed the prime minister.