The Ministry of Finance on Wednesday urged the IDF Home Front Command to ease current restrictions, warning that continued “red" limitations could cost the Israeli economy 9.4 billion shekels per week.
Finance Minister Bezalel Smotrich sent a letter to Prime Minister Benjamin Netanyahu calling for a discussion Wednesday evening on reducing the defensive measures, with the aim of allowing businesses and employees to resume activity near protected spaces as early as Thursday.
At the same time, Finance Ministry Director-General Ilan Rom sent an official letter to the commander of the IDF Home Front Command, Maj. Gen. Shai Klapper, demanding the immediate return of employees to workplaces where accessible protected spaces are available, and the reopening next week of educational institutions that have adequate protection.
According to the ministry’s assessment, the economic damage stems from the “red" restrictions currently in place, which limit travel to workplaces, mandate school closures, and require the mobilization of reserve forces. The bulk of the losses are expected to begin next week.
The ministry has proposed shifting to “orange" restrictions, which would permit limited activity and ease constraints on workplaces. Under that scenario, the weekly economic loss is estimated at 4.3 billion shekels.
Israel and the US began strikes against Iran on Saturday, leading to retaliatory attacks across Israel and the broader Middle East. US and Israeli officials have indicated that the campaign may continue for several weeks.
Schools throughout Israel are closed this week. Public gatherings are banned, and workforce activity is prohibited except for essential services, with most employees working from home.
Israel’s economy, which was affected by the war in Gaza against Hamas, grew by 3.1% in 2025. Following a ceasefire in October, growth had been projected to exceed 5% in 2026.