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Ashburn

Israeli experts have estimated consequences of the annexation of the territories of Palestine

Announced at the beginning of July the application of Israeli sovereignty on the West Bank of the Jordan river will lead to large financial losses, would depress exports and will not improve the financial situation of the settlers themselves, said in an interview with RIA Novosti, Israeli economist, former Deputy Director General of the Ministry of energy of Israel Konstantin Blues.

"If the situation is viewed in the vacuum, the annexation – the game is expensive, and in the face of severe budget deficit and decline in GDP (from 5% to 10%), full annexation will cost a lot of money ringing ... sure, the cost and losses will be considerable", - the expert believes.

The unilateral application of Israeli sovereignty even on the part of the territories of the West Bank may lead to sanctions by the EU and several Arab countries, which, in turn, according to the economist, can inflict a painful blow to the export of Israeli products.

"It is no secret that Israeli products are sold everywhere, including in Muslim countries. And it's not just products companies in the world, produced in Israel (Intel, Cisco), or pharmaceutical brands, but also many others, whose relationship with Israel is not advertised. Local authorities often look the other way. Of course, strict rejection of the annexation could lead to a tightening of inspections and in turn, to a drop in sales of Israeli companies," warns the Blues.

Specialist does not exclude the introduction of special labelling for products of Israeli companies, including production companies working with the settlements. Despite the fact that the impact of this economic measure is not so much, "in a world of fierce competition, spurred by the crisis, even the smallest brand can lead to a decrease in the competitiveness of our products, when, ceteris paribus, the customer may prefer not to mess with Israel," - said the economist.

The spread of sovereignty and replace the military administration operating in the settlements, the usual authorities, is unlikely to lead to the advancement of the settlers themselves, because, from the point of view of an economist, they may lose some benefits that are enjoyed today.

"As for the ordinary settler – it is unlikely that he will benefit from the status change will be lost the exclusivity provisions of "pioneering", through which the government provided in the disputed territories a variety of "buns" - said the expert.

The main beneficiaries when distributing sovereignty may be companies working in the field of real estate, which, from the point of view of an expert, rely on the fact that the change of military administration on civilian make it easier to obtain building permits in the settlements.

"Annexation – first project in real estate. It involved the vast interests of the leaders of the settlements and construction companies. To date, while the disputed territories are controlled by military "Governor-General", the issuance of building permits is very difficult, and annexation, as conceived by many, will provide an opportunity to expeditiously approve the construction of thousands of housing units – huge jackpot by Israeli standards. However, there may settlers expect some frustration – the civil military bureaucracy a little better," he told Blues.

In the case of extension of Israeli sovereignty only in a small part of the Jewish West Bank settlements economic consequences may be less expensive, since the resistance of the Palestinians may be more weak, and working in Jewish settlements, Israeli Arabs, according to the expert, is unlikely to refuse to work in Israel, not wanting to lose income opportunities, given that the Palestinian economy is in even more serious crisis.

"Arab labor force is unlikely to disappear, especially for a long time. As has been said, the Palestinian economy is in a serious condition