Netanyahu Pushes Back on ‘Super-Sparta’ Remark Amid Isolation Fears

Jerusalem, September 16, 2025 - Prime Minister Benjamin Netanyahu defended his warning that Israel may need to adopt “autarkic characteristics” in the face of growing international isolation, stressing his commitment to a free market while insisting self-reliance applies only to defense industries.

The clarification comes after widespread criticism from opposition figures and business leaders, who blamed Netanyahu’s “super-Sparta” analogy for a sharp drop in Tel Aviv stock indices and heightened concerns over Israel’s diplomatic standing.

Nut Graf

Netanyahu’s remarks, made at a Finance Ministry conference on Monday and revisited at a press conference on Tuesday evening, spotlight Israel’s strained ties with key European allies imposing arms embargoes over the Gaza war. The prime minister sought to reassure markets and citizens that Israel’s broader economy remains robust even as defense sectors prepare for potential political constraints.

Market Reaction

  • Tel Aviv’s TA-125 index fell 1.8%, TA-35 dipped 1.6% and TA-90 slumped 2.3% following the “super-Sparta” comments.
  • Leader Capital Markets economist Jonathan Katz warned that continued military spending could widen the budget deficit and jeopardize Israel’s credit rating.

Opposition Backlash

  • Yair Lapid, opposition leader, accused Netanyahu of causing Israel’s diplomatic isolation by remaining silent on controversial far-right ministerial remarks.
  • Yisrael Beytenu chair Avigdor Liberman warned that isolation would turn Israel into a “third world country,” urging an immediate policy reversal.

Focus on Defense Independence

Netanyahu emphasized that autarky would be confined to defense: “If there is one lesson from this war, it is that Israel must defend itself with its own forces and weapons,” he said, pledging to bolster local arms production and cut bureaucratic hurdles. He highlighted record-low unemployment, strong foreign investment inflows, and housing price declines as evidence of overall economic resilience.

International Context

  • European nations have imposed partial arms embargoes over the Gaza conflict, prompting Israel to seek alternative supply chains for critical defense components.
  • A recent UN inquiry accused top Israeli officials, including Netanyahu, of inciting genocide in Gaza; Israel has denounced the report as “fabricated”.
  • U.S. Secretary of State Marco Rubio expressed limited support for Israel’s operations while warning Hamas against using hostages as human shields.

Netanyahu’s dual messaging-reaffirming economic strength while preparing defense industries for isolation-reflects mounting pressure on Israel’s leadership as the Gaza war enters its second year.