Will Obama continue financial aid to Israel?
US aid in form of $3 billion annual arms package likely to remain unchanged. 'Package bound by decade-long contracts,' says former financial attaché to US
US President Barack Obama is unlikely to make far-reaching changes in the financial aspects of his foreign policy, former Israel ambassador to the US, Daniel Ayalon, said Tuesday.
"The American interests do not change simply because the man in the White House has," he continued, adding that the up until 2007, the US financial aid package to Israel stood at $1.2 billion per-annum, atop of $1.8 billion in an arms package.
"Financially, we did well to wean off the US aid. Now we have $3 billion in an annual arms package. Most of which is referred back to the military industries based in the US, which serves their economic interests.
"Moreover, if the new administration tries to take over the peace process, it would be in the US interest to maintain Israel's advantage via the arms package. The latter also enjoys the Congress' support, and the Congress has the final word on the budget," said Ayalon.
Former Financial Attaché to the US Amnon Neubach added that "the arms package is bound by 10-year long contracts, approved by both the House and the Senate and the president has very little leeway on changing it, because it is backed by legislation.
"Should the US face a grave financial problem, the administration could ask for a lateral cutback in the budget, or postpone the contracts, but that kind of move would not be an anti-Israel one."
Israel, added Neubach, has yet to use $4.5 billion of the financial guarantees it was given during the Bush administration.
Danny Gilerman, former Israeli ambassador to the UN, reiterated the sentiment: "The financial relationship between Israel and the US is based on mutual interests. The US is a primary export market for Israel and Israel is a primary import market for them. You have to remember that the private business sector in the US is independent from the government."
