Bank of Israel Governor Stanley Fischer 370.
(photo credit: Sasson Tiram)
The Israeli economy is prepared in case war breaks out with Iran, Bank of Israel
Gov. Stanley Fischer told Channel 2 on Friday.
responsibility of any country is the security of its citizens,” Fischer said,
responding to a question about Iran. “If there is a need to take money and spend
more on defense, then that simply is what will have to be done, and we will have
to pay for it...
“Scenarios in which Israel faces allout war would be
very difficult to deal with. We are preparing to face a real
Asked if he felt responsible for the deteriorating economic
situation facing Israel, and whether he should have presented a “less rosy”
picture to the public in recent months, Fischer said, “It’s not that we are
facing a crisis today. What is happening is that we are acting responsibly” to
prevent a crisis in the future.”
Last week, the Knesset approved
to Shrink the Deficit and Deal with the Repercussions of the International
Economic Crisis, a robust package of budget cuts and tax hikes. The move drew
sharp condemnation from across the political spectrum, and a number of
organizations and movements held demonstrations against the
Fischer complimented Prime Minister Binyamin Netanyahu and
Finance Minister Yuval Steinitz for their “courageous” economic
“We must give credit to the finance minister and the prime
minister, who are doing something that very few leaders in other countries are
doing, by taking care of a problem that they see on the horizon.
are doing so before an election,” he said. “This is courageous policy. And for
this we must give them credit.”