Finance minister warns of volcano's effects

Yuval Steinitz: Most of Israel's foreign trade is with Europe.

At today's cabinet meeting, Minister of Finance Yuval Steinitz warned that the Icelandic volcano, which is paralyzing European air travel, could affect Israel's economy. He said that if the ash cloud does not disperse soon, the Ministry of Finance will have to assess the situation.

Steinitz said that most of Israel's foreign trade is with Europe, so disruptions caused by the volcano could affect Israel. He added that foreign trade with North America could also be in jeopardy, because air traffic between it and Israel passes over Europe.

Steinitz said that the volcanic ash "casts a heavy cloud over Israel". Among the main victims are Israeli flower growers who export by air to Europe, and senders of other air cargoes. Incoming tourism is also expected to take a hit.

Published by Globes [online], Israel business news - - on April 18, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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