The euro's downward slide over the weekend has sparked concern amid Israel's exporters. Avi Hefetz, CEO of the Israel Export and International Cooperation Institute, said Sunday he feared another global economic crisis similar to the one that developed in 2008.
Hefetz accordingly called on exporters to prepare for the worst and shift their markets to non-European ones less likely to be affected by the drop in value of the EU's currency.
He added that one of two outcomes was likely to occur. Either Greece, Spain, and Portugal would drag Britain, France, and Italy into a limited downfall causing budget-cuts and tax raises, or all of Europe would fall into an economic crisis following Greece's inability to pay off its debts.
In either case, Hefetz said, Israeli exporters will be affected. However the latter scenario, which he says could occur in the next few days, would not allow them enough time or options to prepare and would more drastically drag down the market.
He added that among the most vulnerable markets in Europe were chemicals, worth around six billion dollars to exporters, produce, of which 70% is sold in Europe, and plastic products, of which 55% are exported to European countries.