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Israel Ministry of Defense Spokesperson's Statement: Israel MOD Director General, Maj. Gen. (Res.) Amir Baram's Remarks at the Israel Ministry of Finance Accountant General Conference

Israel Ministry of Defense

15/9/2025

Israel Ministry of Defense (IMOD) Director General, Maj. Gen. (Res.) Amir Baram participated today (Monday) in the Israel Ministry of Finance Accountant General Conference and addressed in his lecture the close connection between security and economy: "We stand at the threshold of an intensive security decade, both globally and locally. Security and economic strength are inextricably linked, particularly in Israel. Fundamental security is a cornerstone of national security - alongside robust economics, social cohesion, and cutting-edge technology".

Regarding the global security situation, the Director General said: "We are witnessing a dramatic surge in defense budgets worldwide. Global defense expenditures in 2024 reached approximately $2.7 trillion, representing a 20% increase compared to 2023 - the most substantial increase since 1988."

Regarding the war's impact on the Israeli economy, he stated: "Despite the war's prolonged duration, with economic costs exceeding 205 billion NIS, our economic indicators demonstrate resilience - particularly following strategic security successes such as the pager operation and Operation Iron Swords. The CDS (Credit Default Swap) index and exchange rates (shekel-dollar) are more robust today than before October 7, 2023. Despite the war's continuation and enormous challenges - including attrition, escalating costs, and societal strain - a positive correlation exists between these indicators that reinforces our economic stability and reflects a declining risk premium."

Regarding the IMOD's preparation for continued fighting and emerging security challenges, he mentioned: "To maintain our qualitative military edge, the Ministry operates across three strategic timeframes: immediate-term procurement, medium-term readiness enhancement for the coming decade, and long-term development of game-changing weapons systems for future conflicts".

"We are establishing a new National Armament Council - a framework designed to accelerate our preparedness for third and fourth-tier threats dramatically. This comprehensive body will unite all stakeholders around a unified table: the defense establishment, Treasury officials, the Ministry's R&D directorate, defense industries, and additional relevant entities".

"We must invest immediately in anticipating 'the next strategic surprises' and developing capabilities for future asymmetric operations. This represents the essence of defense economics. Consequently, we must fundamentally transform our production and procurement processes for critical defense systems."

"Lessons learned from current operations, combined with global trends toward de-globalization and de-legitimization, necessitate expanding Israel's local production capacity, achieving independence in critical components, and securing long-term strategic partnerships through sophisticated contractual arrangements".

"Operation Rising Lion concluded with an unequivocal Israeli victory, yet additional confrontations with Iran are inevitable. The Iranian regime, operating from a position of strategic humiliation, is massively investing in security infrastructure and pursuing accelerated force-building initiatives."

Regarding the strategic effort led by the IMOD to increase defense exports: "The Ministry serves as both a strategic investor and revenue generator, not merely a cost center. Defense export promotion constitutes a fundamental pillar of our strategic operations, particularly through government-to-government (GTG) frameworks."

"In the past week alone, we finalized agreements totaling $2.5 billion. While confidentiality prevents me from identifying our partner nations, these governments clearly recognize the strategic value of sustained security investments in today's volatile global landscape."

"Our strategic approach prioritizes the development of Israel's

Defens-Tech sector while reinforcing our distinctive national innovation ecosystem. Recently, we launched a joint investment fund in partnership with the Chief Scientist's Office, specifically designed to establish Defens-Tech as a primary economic catalyst, expand our defense export portfolio, and fulfill critical IDF operational requirements."