DAY 101 OF THE GAZA WAR: Terror Attack in Ra'anana, Fate of Hostages, Problematic Budget Approved
Tel Aviv Diary, January 15, 2024
TERROR ATTACK IN RA’ANANA
Despite fighting in the both the North and the South, our attention was abruptly drawn to a terror attack in the city of Ra'anana. Two terrorists from the southern West Bank town of Bani Naim, close to Hebron, carjacked an elderly woman and stabbed her. They took the woman’s car and began to run down pedestrians. Over several minutes, the pair of terrorists switched cars two more times, continuing on their spree of trampling pedestrians
.
In total, 17 people were wounded along the main streets of Ra'anana, a suburb of Tel Aviv. The elderly woman, Ra'anana resident Edna Bluestein (79) died from her injuries.
The two terrorists were cousins who were working in Israel illegally, after being denied permission to work in Israel, due to their previous arrests. The terrorist duo had been working at a car wash in Ra'anana.
POLITICAL FIGHT OVER PALESTINIAN WORKERS IN ISRAEL
The Ra'anana terror attack occurred in the middle of a political fight. Just yesterday, I reported on Galant's warning that unless we allow Palestinian West Bank workers back into Israel, the security situation will deteriorate significantly. Yesterday, several Likud Ministers attacked Galant, asserting that allowing Palestinians into Israel to work would increase the number of terror attacks. Today’s attack provides significant ammunition to those who hold the later position.
It should be noted that permitting Palestinians into Israel does not only help them, but is also needed by the Israeli economy. Construction on most of the large building projects in Israel have come to a near halt due to the lack of laborers. While there has been discussion about bringing in new foreign workers, so far, it has remained just talk. It’s noteworthy that among the years of continued terror attacks, fewer than a handful were perpetrated by individuals who had passed security checks and obtained clearance to work in Israel. Nevertheless, the fear is genuine and very natural, as current surveys show that over 70% of West Bank residents claim they support Hamas.
IN GAZA
The IDF has announced the withdrawal of one of the four divisions engaged in combat in Gaza. Reports from today indicate that yesterday, Army Chief of Staff Hertzi Halevi issued an urgent warning to Prime Minister Netanyahu and Defense Minister Gallant.
Halevi stated:
We face the erosion of the achievements we have attained thus far in the war because there is no strategy for the day after. We may have to return and operate in areas we already finished fighting.
Highlighting Halevi’s cautionary remark, tonight a salvo of 14 rockets was fired tonight at Sderot from the northern Gaza village of Bet Hanoun — which was one of the first locations the IDF entered, and in theory, cleared of Hamas presence early in the ground operation.
Within the war cabinet, there is a division of opinion regarding whether to agree to a ceasefire in order to secure the return of the hostages. Former IDF Chiefs of Staff Gadi Eisenkot and Benny Gantz have been advocating for Israel has to agree to a temporary cessation of hostilities, emphasizing that time is running out to bring the hostages back home. Netanyahu and Galant have not agreed to the Eizenkot/Gantz approach. Galant appeared on TV tonight to state we cannot stop fighting without defeating Hamas— as exiting Gaza prematurely would negate all our efforts thus far.
HOSTAGES
Hamas released a video yesterday, showing three live hostages — two men and a woman. Over the course of today, the terror organization claimed they would release information on what happened to those three hostages tonight. Tonight, a video was released in which Noa Argamani announced that two men (Itai Svirsky, and a second individual whom the Army spokesman stated the family requested remain unnamed) were dead as a result of an IDF bombing. Later this evening, IDF spokesman Rear Admiral Danny Hagari stated that these men were not killed by IDF bombing. However, there was serious concern regarding whether they were still alive.
Despite the disagreement within the War Cabinet on the optimal strategy to recover the hostages, there is no significant proposal on the table at this time.
ON THE BATTLEFIELD
It was a relatively quiet day on our northern front, with only a few attacks from Lebanon. There were also no significant announcements regarding fighting in Gaza, other than the aforementioned withdrawal of one division
.
IN OTHER MIDDLE EAST RELATED NEWS
The Houthis launched a missile at an American-owned container ship, resulting in minor damage to the vessel. Fortunately, no injuries were reported. In a separate incident this evening, Iranian forces claimed responsibility for targeting what they referred to as the “Mossad Headquarters” in Erbil, Iraq. While missiles did strike close to the US Consulate in the city, no further details about the extent of the damage, or potential casualties are available at this time.
THE BUDGET
The government passed the new 2024 budget, based on the framework of the budget that had been passed last year. The new budget allocates an additional NIS 75 billion to the IDF for next year — beyond the NIS 60 billion originally budgeted. Ben-Gvir will receive an additional NIS 2 billion for the police and other parts of his ministry. None of the unnecessary ministries will be eliminated. Also, the planned repeal of the additional tax credits for children, set to take effect this year, will proceed as planned.
In 2025, VAT will increase by 1%, health tax will increase by .15%, and electricity will increase by 1% a year. All the ministries will receive a cross-the-board 5% cut. The special program to fight crime and other problems in the Arab-Israeli sector — which by all accounts is working well — will be cut by 15%. In addition, several of the long planned infrastructure projects in the North will be delayed indefinitely.
What won’t be touched is the planned increased subsidies to Yeshiva students, the increase in salaries for Yeshiva teachers, and the extra money for the settlements.
The end result — a record NIS 120 billion deficit the upcoming budget year.
Additionally, the Army is demanding a commitment to double the Defense Budget after 2024 —which would mean an increase of NIS 60 billion. Committing to such a large budget increase is highly problematic, as it will have significant long-term budgetary implications. Moreover, it seems premature to allot extra funds to the military for coming years, until a revised defense strategy is developed — especially after the lessons of October 7th are determined and included in a new plan.
ECONOMY
Israeli consumer price index was released today. It showed a .1% decrease in prices in December. For the year, Israel’s inflation rate was 3%. The price of apartments dropped 1.8% during the year. The price of fruits and vegetables went up 13.6%.