Israel
Israel’s economy: A Banana Republic run by monopolies
Israel increasingly resembles an economy captured by monopolies, where a small circle of powerful interests dominates key sectors and ordinary consumers foot the bill.
France has shut down the four main Israeli company stands at the Paris Airshow for apparently displaying offensive weapons, in a move condemned by Israel that highlights the growing tensions between the traditional allies.
View of the closed IAI stand after the four main Israeli company stands at the Paris Airshow have been shut down by organizers during the 55th Paris Air Show at Le Bourget Airport near Paris, France, June 16, 2025. Reuters/Benoit Tessier
France has shut down the four main Israeli company stands at the Paris Airshow for apparently displaying offensive weapons, in a move condemned by Israel that highlights the growing tensions between the traditional allies.
A source familiar with the matter told Reuters on Monday that the instruction came from French authorities after Israeli firms failed to comply with a direction from a French security agency to remove offensive or kinetic weapons from the stands.
A spokesperson for Gifas, the show's organiser, said some stands were closed, but declined to comment further.
Three smaller Israeli stands, which didn't have hardware on display, and an Israeli Ministry of Defence stand, remain open.
France and Israel, traditionally close allies, have had frosty relations in recent months with French President Emmanuel Macron increasingly critical over Israel's war in Gaza.
Following Israel's missile strikes on Iran on Friday, Macron said Iran bore a heavy responsibility for destabilising the Middle East, but also urged Israel to show restraint.
Israel's defence ministry said it had categorically rejected the order to remove some weapons systems from displays, and that exhibition organisers responded by erecting a black wall that separated the Israeli industry pavilions from others.
This action, it added, was carried out in the middle of the night after Israeli defence officials and companies had already finished setting up their displays.
"This outrageous and unprecedented decision reeks of policy-driven and commercial considerations," the ministry said in a statement.
"The French are hiding behind supposedly political considerations to exclude Israeli offensive weapons from an international exhibition - weapons that compete with French industries."
Reporting by Paul Sandle, Tim Hepher and Steven Scheer
Israel increasingly resembles an economy captured by monopolies, where a small circle of powerful interests dominates key sectors and ordinary consumers foot the bill.
Israeli Prime Minister Benjamin Netanyahu accused Hamas on Wednesday of violating the Gaza ceasefire agreement after a military officer was wounded by an explosive device in Rafah and Israel vowed retaliation.
Israeli Defence Minister Israel Katz said on Tuesday that the military would never fully withdraw from the Gaza Strip for security reasons and that a civilian-military army unit would be established in the Palestinian enclave.
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