Overview

• Prime Minister Benjamin Netanyahu said Israel must become more self‑reliant with autarkic traits and expand domestic weapons production, describing a move toward a "super‑Sparta" model.
• He acknowledged Israel is in "a sort of isolation" and pointed to European calls for embargoes and sanctions, while attributing rising hostility in parts of Europe to demographic changes and to online influence campaigns by foreign actors such as China and Qatar.
• The Israel Business Forum declared "We are not Sparta" and warned of political, economic and social risks, while Histadrut chief Arnon Bar‑David said society is exhausted and called for peace.
• Opposition figures Yair Lapid, Yair Golan and Gadi Eisenkot accused the government of causing Israel's isolation and urged political accountability or replacement.
• Netanyahu later clarified that his remarks were primarily political and focused on potential curbs targeting defence industries, sought to reassure executives with upbeat indicators on the shekel, stocks and employment, and dismissed a stock‑market dip that followed the Gaza City offensive as a misunderstanding.