The Domestic and International Economic Implications of a Possible Israeli Annexation in the West Bank

In recent years, the idea of annexation of some parts or the entire West Bank has gained growing popularity in Israeli mainstream politics. During the three election campaigns of 2019 and 2020, Prime Minister Benjamin Netanyahu promised to promote such an annexation if re-elected into office. The idea received further support when the president of the United States, Donald Trump, released his Middle East peace plan. Despite the fact that by now no steps have been undertaken, the Israeli prime minister stated that Israel’s sovereignty claim over the Jordan Valley was still on the agenda and frozen for the time being.

The purpose of this paper is to analyze the economic costs of such a decision both internationally and domestically.

Edited by: Dr. Jan Busse, Dr. Ruth Hanau Santini, Dr. Roby Nathanson, Dr. Paul Pasch, and Mr. Yanai Weiss.

Published by the IEPN, Israeli European Policy Network, and the Friedrich-Ebert-Stiftung Israel.

Israel, September 2020

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