Cohen says disengagement may foster economic growth
‘Disengagement will cost NIS 7 billion’
Prime Minister’s Office General Director Ilan Cohen says if diplomatic process continues economic growth rate may reach 5 percent, unemployment would drop under 9 percent mark
The implementation of the disengagement plan will cost an estimated NIS 7 billion (about USD 1.7 billion), Prime Minister’s Office General Director Ilan Cohen said Wednesday.
However, he said any delay in carrying out the plan would be a “political, economic, and social tragedy.”
“In my estimation, if the diplomatic process would continue, we would be able to reach a growth rate of about 5 percent,” Cohen said. “At the same time, the unemployment rate would drop to below 9 percent and foreign investments would increase.”
Regarding the relocation of settlers following the expected evacuation from Gaza and parts of the West Bank, he said he estimates one-third of the settlers would find alternate residences on their own, while the government would have to find appropriate accommodations for the rest.
Cohen said a special employment office has been set up to assist settlers in finding alternate jobs upon their evacuation.
He said that while the disengagement is Prime Minister Ariel Sharon’s main goal for 2005, its implementation would not obstruct the continued execution of other social and economic reforms, as well as the privatization of government-owned companies.
“We must not say everything must be put aside because of the disengagement,” Cohen said.
