Gadi Eisenkot and the Palestinian economy: What could really change if he leads Israel? - opinion
If preventing the PA's collapse is part of Eisenkot’s security outlook, the test will be whether Palestinians, workers, goods, revenues, and money can move stably and predictably.
If Gadi Eisenkot were to become Israel's next prime minister, the economic impact on the Palestinian economy would be significant. However, it is crucial to understand that the Palestinian economy is deeply intertwined with Israel's, through various frameworks and daily interactions. The Israeli shekel is the primary currency used in Palestinian transactions, and clearance revenues are a major source of income for Palestinians. Many Palestinians also work in Israel, and Palestinian banks rely on Israeli banking systems.
Eisenkot's approach to the Palestinian Authority (PA) would matter economically, as well as politically. In 2022, he warned against dismantling the PA and annexing the West Bank, suggesting that preserving Palestinian institutions was connected to Israeli security interests. This indicates that preventing the collapse of the PA could be intertwined with the economic well-being of Palestinian society.
One of the first tests of Eisenkot's leadership would be his stance on Palestinian workers. In an interview, he argued that banning Palestinian workers from entering Israel had not prevented unauthorized entry and suggested that allowing family breadwinners to work in Israel after security screening could be more beneficial. While he did not explicitly promise a full reopening of the Israeli labor market, allowing Palestinian workers to return could have significant economic consequences for both households and the local economy.
Written by urgent.news from Jerusalem Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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