A positive trend on the Tel Aviv Stock Exchange reversed sharply on Monday following Prime Minister Benjamin Netanyahu’s “super-Sparta” speech, in which he said Israel must adapt "autarkic features" to its economy amid growing global isolation. Leading indexes fell more than 2% within minutes of his remarks, though losses later moderated.
By the close of trading, the TA-35 index fell 0.2%, TA-90 dropped 1.3% and TA-125 declined 0.5%, with TA-Oil & Gas down 2%, TA-Real Estate 1.4% and TA-Insurance 1.3%. Stocks like Bet Shemesh Engines Holdings, Next Vision Stabilized Systems, Isramco Negev 2 LP, New-Med, Energean and Delek Group saw declines ranging from 2.1% to 4.2%.
Speaking at the Accountant General’s Conference in Jerusalem, Netanyahu said Israel faces a “new and challenging diplomatic reality” driven in part by demographic and technological shifts abroad.
He argued that Muslim migration to Europe has created a “significant and vocal minority” that bends European governments on issues related to Gaza. “They deny Zionism,” Netanyahu said, adding that this influence was fueling sanctions and restrictions against Israel and limiting its ability to import key weapons components.
In unusually blunt remarks, Netanyahu said these trends are pushing Israel toward partial economic self-reliance. “We will increasingly have to adapt to an economy with autarkic features,” he said. “It’s a word I dislike — I believe in free markets, I worked to bring Israel a free-market revolution.
“But we may find ourselves in a situation where our defense industries are blocked. We will have to develop indigenous defense industries. We will have to become Athens and super-Sparta. We have no choice. At least in the coming years, we will have to deal with these attempts at isolation. What worked until now will not work from now on.”
Netanyahu’s remarks drew sharp criticism. “Netanyahu’s warnings scare him because he knows they’re true," the Israel Economic Forum responded. "He admits to leading Israel toward economic and security ruin, relying on a messianic public cheering him on.”
“The Israeli brand of creativity and success is severely damaged globally," Manufacturers Association of Israel head Ron Tomer warned. "An autarkic economy would be a disaster, harming quality of life. Export is Israel’s growth engine; abandoning it means abandoning our future.”
The Israeli High-Tech Association, representing tech CEOs, added, “High-tech, the economy’s growth driver, depends on global markets and investor trust. Isolation undermines our technological and military edge. Is Netanyahu’s vision to revert to selling oranges?”
Knesset Finance Committee opposition leader MK Vladimir Beliak of Yesh Atid sharply condemned Netanyahu's remarks, saying, “Netanyahu and his corrupt circle won’t live in an autarkic economy. They’ll keep traveling abroad, profiting from billionaires. This ‘super-Sparta’ reality of low living standards is for working Israelis. His statement is lunacy, demanding one response: topple his regime through legal resistance.”
Shachar Turjeman, president of the Federation of Israeli Chambers of Commerce, called the speech “a dangerous medieval nightmare unfit for a modern economy,” adding, “An autarkic economy can’t coexist with a strong stock market or thriving trade.
“With over 150,000 workers already missing, a closed economy is detached from reality. Instead of isolation, the government must ensure stability, rebuild market trust and reduce regulatory burdens.”