{"id":409713,"date":"2025-11-28T03:01:22","date_gmt":"2025-11-28T03:01:22","guid":{"rendered":"https:\/\/www.europesays.com\/us\/409713\/"},"modified":"2025-11-28T03:01:22","modified_gmt":"2025-11-28T03:01:22","slug":"israel-eyes-3-billion-wiz-windfall-to-strengthen-economy-and-cut-deficit","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/409713\/","title":{"rendered":"Israel eyes $3 billion Wiz windfall to strengthen economy and cut deficit"},"content":{"rendered":"

Dr. Shmuel Abramzon, the Finance Ministry\u2019s chief economist, highlighted the pending sale of Israeli cybersecurity firm Wiz to Google as a key factor for the country\u2019s 2026 economic outlook during Calcalist\u2019s Global Economics Conference on Thursday.<\/p>\n

The Wiz deal, which has not yet closed, is expected to generate 10 billion shekels (approximately $3.06 billion), roughly half a percent of Israel\u2019s GDP. \u201cThe Wiz deal is indeed very significant. The right approach when looking at one-time revenues is not to use them for permanent spending, but to reduce the debt,\u201d Abramzon said.<\/p>\n

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1 View gallery <\/p>\n

\"\u05db\u05e0\u05e1<\/a>\"\u05db\u05e0\u05e1<\/p>\n

Dr. Shmuel Abramzon, the Finance Ministry\u2019s chief economist. <\/p>\n

(Photo: Yariv Katz)<\/p>\n

Despite the uncertainty around the deal, the Finance Ministry remains optimistic about Israel\u2019s broader fiscal outlook. The ministry is projecting a deficit of 3.2% next year, with growth exceeding 5%, which could allow for a 1-2% reduction in government debt. \u201cI very much hope that the government will approve a not-high deficit,\u201d Abramzon said.<\/p>\n

When asked about the surge in state revenues in recent years, Abramzon attributed part of the boost to strong capital markets and improved tax collection, including moves against black market capital. \u201cWe were very positively surprised by the revenues recorded by the state,\u201d he said, noting that these gains helped the government avoid significant tax increases even amid slow economic growth.<\/p>\n

On the broader economic outlook, Abramzon emphasized both opportunities and risks for Israel in 2026. \u201cWe see an economy emerging from two challenging years, with strong opportunities and risks. One of the most important factors is good policy, to strengthen government measures that allow monetary policy to encourage growth.\u201d<\/p>\n

He highlighted global opportunities, particularly in India, where Israel has signed an investment agreement and is working toward a broader trade deal. \u201cIndia has enormous potential. It is growing above the global average and has a base of support for Israel that you do not always see in Europe,\u201d he said. He also mentioned ongoing negotiations for an expanded trade agreement with the United States to create a stronger strategic economic partnership.<\/p>\n

On domestic fiscal policy, Abramzon reiterated the Finance Ministry\u2019s opposition to tax benefits, arguing that direct reductions in VAT and income taxes would be a more effective approach. \u201cThere are 1.5 billion shekels ($459 million) in tax benefits, and from time to time there is an appetite to add more. This is not the correct approach professionally. We would prefer to lower VAT and income tax rates,\u201d he said.<\/p>\n

Abramzon also commented on potential taxation of banks, noting that high profitability is partly driven by concentration and limited competition. \u201cTaxation could be part of the solution, but it is not a long-term fix,\u201d he said.<\/p>\n

As Israel prepares its 2026 budget, the Wiz sale looms large, not only for its immediate fiscal impact, but as a signal of the country\u2019s ability to attract global investment. \u201cThe right approach is to use one-time revenues responsibly and maintain fiscal discipline. That sends a clear message to markets about the government\u2019s management and commitment to stability,\u201d Abramzon said.<\/p>\n","protected":false},"excerpt":{"rendered":"Dr. Shmuel Abramzon, the Finance Ministry\u2019s chief economist, highlighted the pending sale of Israeli cybersecurity firm Wiz to…\n","protected":false},"author":3,"featured_media":409714,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,67,132,68],"class_list":{"0":"post-409713","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115625099022830130","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/409713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=409713"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/409713\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/409714"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=409713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=409713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=409713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}