2. @Rivkah # 1 re "Smart law"
Rivkah, in any case, as most Greek Jews are Sefaradim descended from people who can prove their descent from the Jews expelled from Spain due to the Alhambra Decree (excluding people descended from Greece's Romaniote Jewish community, who trace roots in Greece even longer), they could probably get Spanish citizenship anyway. Since the Israeli economy is doing well and the Spanish and Greek economies are kinda crappy, not too many Israelis will settle in Greece OR Spain, though. But as long as Greece remains part of the EU, many Israelis might take advantage of a Greek or Spanish passport so they could live and work (whether short-term or long-term) in better EU economies, like France, Belgium and Germany (due to Brexit the UK soon won't be an option). An EU passport is also useful for Israelis to travel to other places without applying for a visa, including the USA. As it stands now, Israeli passport holders who want to make even a short visit to the USA have to apply for a visa, endure long lines at the embassy and pay for the privilege to be subjected to rigorous income checks to help alleviate concerns on the part of the Americans that they won't overstay. Greeks don't have that indignity so it would be easier for Israelis to visit the USA on a Greek passport. Not sure if it will help the Greek economy so much, although they'll get a little bit of revenue from the passport fees from Israelis.
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