Israel’s political crisis threatens economy: Stock exchange chief sounds alarm, demands unity government

Tel Aviv Stock Exchange CEO Ittai Ben-Zeev has urged Israel’s political leaders to form a broad unity government, warning that prolonged political instability threatens the country’s economic future.

“National responsibility must prevail over short-term political considerations,” Ben-Zeev declared, calling for cross-party cooperation to secure economic growth, attract investment, and advance critical infrastructure projects.

The appeal follows an inconclusive election that left Netanyahu’s bloc with 53 seats and his opponents with 67, but no clear path to a governing coalition. Israeli stocks have fallen, and the shekel has weakened amid political uncertainty.

President Isaac Herzog issued his own urgent appeal, warning party leaders to “stop climbing trees, and face reality.” Ahead of coalition consultations beginning Wednesday, Herzog urged rival factions to abandon rigid campaign positions, approach negotiations with an open mind, and find creative compromises to prevent another election.

Herzog will consult all elected factions before deciding which lawmaker receives the mandate to form Israel’s next government, as the country faces the prospect of prolonged coalition negotiations—or another trip to the polls.