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Israel

Last updated: 25 June 2009

Country information

British designations in Israel & the Occupied Palestinian Territories


Full Country Name: The State of Israel
Area: 21,000 sq. km (pre-1967 borders)
Population: 7m
Capital City: Israel maintains that Jerusalem is its capital city, a claim not recognised by the UK and the international community. The UK locates it embassy in Tel Aviv.
People: Jews (76%), Muslims (16.1%), Christians (3.4%), and Druze
Languages: Hebrew, Arabic (official). English and Russian widely spoken
Religion(s): Judaism, Islam, and Christianity
Currency: New Israeli Shekel (NIS)
Political parties: Kadima, Likud, Israel Beitenu, Labour, Shas,, United Torah Judaism (UTJ), Meretz, National Union, Jewish Home, United Arab List, Hadash, Balad.
Government: Coalition government led by Likud with Israel Beitenu, Shas, Labour, UTJ, and Jewish Home.
Head of State: President Shimon Peres
Prime Minister: Benjamin Netanyahu
Foreign Minister: Avigdor Lieberman
Defence Minister: Ehud Barak
Membership of international groups/organisations: United Nations, International Monetary Fund, World Bank, and World Trade Organisation.

ECONOMY

Basic Economic Facts

Annual Growth: 4.1% in 2008
Inflation: 3.3% in 2008
Major Industries: Electronics, telecommunications, information technology, biotech, tourism, construction, diamonds, and agriculture
Major Trading Partners: USA and EU

Israel has developed a world-class reputation for technological research and development (particularly in electronics, biotechnology, and software). It also enjoys trading exports in cut diamonds, chemicals, and agricultural products.

Israel’s economy is in a relatively good situation despite the global financial crisis and the slowdown in the US. The overall performance of the economy in 2007 and in 2008 won plaudits from the World Bank and other leading economic institutions. The two major rating agencies gave Israel an ‘A’ rating and Israel is currently in the process of applying to join the OECD. Much of this is due to the high-tech sector, which continues to go from strength to strength, with growing international respect for Israeli innovation and technology.

Israel's gross domestic product (GDP) grew by 5.3% in 2007 and by a further 4.1% in 2008,but like the rest of the world began to slow down in the last quarter of 2008. The last three years have seen a 50% increase in the number of British tourists visiting Israel.

The 2008 budget totalled NIS314 billion. The government has set the budget for 2009 at NIS 245 billion, and for 2010 at NIS 231 billion. The cabinet has also decided to reduce the budget deficit gradually over the next six years. The approved deficit for the 2009-2010 period will be 6%, falling to 5.5% in 2010. Military spending and debt repayments remain the major items of budget spending. Thanks to a well-managed monetary policy, the Government only slightly missed its inflation target for 2008 of 2-3%.

Despite the strong underlying economy, the long-term outlook remains heavily dependent on developments in the conflict with the Palestinians and on political and security developments in the region.

HISTORY

  • 1948 End of British Mandate and State of Israel Proclaimed (14 May)
  • 1948 War/War of Independence (May 1948-March 1949)
  • 1949 First Knesset (parliament) elected; David Ben Gurion first Prime Minister Israel admitted to the United Nations
  • 1956 Suez/Sinai Campaign
  • 1967 June/Six-Day War
  • 1973 Yom Kippur/October War
  • 1975 Israel becomes an associate member of the Common Market
  • 1977 Likud forms its first Government after almost 30 years of Labour/Mapai rule  
  • 1978 Camp David Accords, which included a framework for comprehensive peace in the Middle East and Palestinian self-government
  • 1979 Israel-Egypt Peace Treaty signed by Prime Minister Menachem Begin and President Anwar Sadat
  • 1982 Israel invades Lebanon
  • 1985 Free Trade Agreement signed with the United States
  • 1987 The First Intifada begins, lasting six years
  • 1989 Start of mass immigration of Jews from the Soviet Union
  • 1991 Middle East Peace Conference convened in Madrid  
  • 1993 Oslo Accords - Declaration of Principles on Interim Self-Government Arrangements for the Palestinians signed by Israel and the PLO
  • 1994 Israel-Jordan Peace Treaty signed. Implementation of Palestinian self-government in Jericho and Gaza
  • 1995 Prime Minister Yitzhak Rabin assassinated (4 November). Broadened Palestinian self-government implemented in West Bank and Gaza
  • 1997 Hebron Protocol signed  
  • 1998 Wye River Memorandum signed  
  • 2000 Israeli withdrawal from south Lebanon  Camp David Talks (July) Second ('Al Aqsa') Intifada begins (September)
  • 2001 Ariel Sharon elected Prime Minister (February). Forms a National Unity Government coalition
  • 2003 Israeli Cabinet accepts the steps set out in the Roadmap (May)
  • 2005 Disengagement plan is implemented: Israel evacuates all settlers from the Gaza Strip and from four settlements in the northern West Bank (August)
  • The Israeli Defence Forces withdraw from Gaza (September)
  • 2005 Ariel Sharon resigns from Likud to form a new political party, Kadima (November)
  • 2006 Ehud Olmert becomes Acting Prime Minister, after Sharon suffers a stroke (January); sworn in as Prime Minister following March general election
  • 2006, Palestinian militants kill two Israeli soldiers and abduct Corporal Gilad Shalit from Kerem Shalom in southern Israel and take him into the Gaza Strip
  • 12 July 2006 Second Lebanon War breaks out following the Hizballah abduction of two Israeli reservists from Northern Israel to Lebanon and the killing of another eight soldiers
  • 14 August 2006 Cease-fire and end of Second Lebanon War
  • 26 November 2007 Middle East Summit in Annapolis; Israelis and Palestinians agree to implement roadmap
  • 31 July 2008 Following allegations of fraud and misconduct, Prime Minister Ehud Olmert announces he will not run for the leadership in the Kadima primary, effectively announcing his stepping down as Prime Minister
  • September/October 2008 Tzipi Livni elected leader of ruling Kadima party but fails to form a coalition government; President Peres calls elections
  • 19 December 2008 Six-month cease-fire between Israel and Hamas expires
  • 27 December 2008 Israel launches Operation Cast Lead in Gaza Strip in response to persistent rocket attacks on southern Israel
  • 8 January 2009 UN Security Council passes Resolution 1860 proposed by UK calling for an immediate ceasefire
  • 18 January 2009 Israel and Hamas announce unilateral ceasefires
  • 21 January 2009 Last Israeli troop withdrawn from Gaza
  • 10 February 2009 Elections for 18th Knesset held; Kadima wins 29 seats, Likud 28
  • 20 February 2009 President Peres ask Benjamin Netanyahu to form coalition
  • 31 March 2009 New Israeli government sworn in

INTERNATIONAL RELATIONS

Israel has diplomatic relations with 160 countries. It has over 90 diplomatic missions.

In the Middle East, Israel has diplomatic relations with Egypt (Israel-Egypt Peace Treaty 1979) and Jordan (Israel-Jordan Treaty of Peace 1994). Lebanon and Syria do not have diplomatic relations with Israel. The governments of Tunisia, Morocco, and Oman suspended diplomatic relations at the start of the Second Intifada (2000).

ISRAEL'S RELATIONS WITH THE UK

Since the founding of the State of Israel, bilateral relations between the UK and Israel have been solid, but not without differences of opinion. An active British Jewish community has always brought vitality to the relationship. There are regular Ministerial exchanges: the Prime Minister, Gordon Brown, visited Israel as part of the celebrations for its Diamond Jubilee year in July 2008, becoming the first British Prime Minister to address the Knesset. He also visited Israel, together with five other European leaders, in January 2009 following the announcement of a ceasefire in Gaza. The Foreign Secretary, David Miliband, last visited Israel in November 2008.

In November 2008, the Israeli President, Shimon Peres, visited the UK and addressed members of both Houses of Parliament. He also received an honorary knighthood from HM The Queen.

Diplomatic Representation

The UK has full diplomatic relations with Israel. The British Embassy in Israel is located in Tel Aviv. Responsibility for East and West Jerusalem, the West Bank, and Gaza lies with the British Consulate-General in Jerusalem.

UK in Israel
UK in Jerusalem

GEOGRAPHY

'Green-line' Israel (1949 armistice boundaries) covers 21,000 sq. km and is about the same size as Wales. But Israel's borders and the status of Jerusalem are still disputed. Israel has occupied East Jerusalem, the Golan Heights, the West Bank, and Gaza since 1967 (Israel withdrew from Gaza in 2005, but maintains control of Gaza’s airspace and borders on three sides). In 1980, Israel annexed East Jerusalem.  In 1981, it annexed all of the Golan Heights area captured from Syria in 1967. Mount Hermon, the highest peak in the annexed Golan Heights, is 2,000 metres high. By contrast, the Dead Sea is the lowest point on earth, at 396 metres below sea level.

Israel is 550 km long but only 12 km wide at its narrowest point within the Green Line. Its main regions are:

  • Galilee – an area of partly forested rolling hills, bordered by the Sea of Galilee in the east, the Mediterranean in the west, and the Lebanese border in the north.
  • Carmel – a limestone escarpment with Mediterranean scrub vegetation, running south from Haifa, parallel to the Mediterranean coast. 
  • Coastal Plain – a strip some 12-20 km wide along the Mediterranean with the greater part of Israel's population and industry. 
  • Jerusalem Hills – forested hills, with commuter towns and villages. 
  • Negev – a rock desert extending over 40% of Israel's land area, in the south. 
  • Jordan Valley – an extension of the Great Rift Valley in Africa, running along Israel's eastern border.

Trade and Investment with the UK

Bilateral business relations are excellent and continue to flourish, with more than 250 Israeli firms operating in the UK. Trading relations between the two countries continue to be strong; bilateral trade reached £2.3 billion in 2008. Israel is the UK’s 23rd largest market worldwide and is the third biggest export market in the Middle East; major British companies including HSBC and British Airways have significant business interests in Israel. The excellent trade links between the UK and Israel are reflected in the number of high-level visitors: in 2008, these included the Governor of the Bank of England, the Lord Mayor of the City of London, the Minister of State for Trade & Investment, and numerous business delegations.

Britain and Israel have strong links in the fields of science and technology. Like the UK, Israel is an R&D- intensive society and bilateral links are encouraged through schemes such as the Britain-Israel Research and Academic Exchange (BIRAX) and the EU's Framework Programme for research and technological development.

UK Trade & Investment Country Profile: Israel

POLITICS AND ELECTIONS

Israel is a democratic republic. Elections to the single-chamber legislature, the Knesset, are based on a system of proportional representation. The Knesset has 120 members who are elected from party lists. No Israeli political party has ever won an absolute majority in the Knesset. The law stipulates that elections should be held every four years, but they are often called sooner.

Israel does not have a written constitution, but a series of 'Basic Laws'.

The President is the Head of State, which is mainly a ceremonial post. The current incumbent, Shimon Peres, was elected by members of the Knesset in June 2007.

Elections to the current Knesset took place on 10 February 2009. These elections distributed seats among 12 parties: Kadima 28, Likud, 27, Israel Beitenu 15, Labour 13, Shas 11, United Torah Judaism 5, The New Movement – Meretz 3, National Union 4, Jewish Home 3, Hadash 4, United Arab List 4, Balad 3. Since no party had an overall majority, President Peres asked Benjamin Netanyahu to form a coalition government. The Knesset approved Netanyahu’s government on 31 March 2009. The coalition is currently made up of Likud, Israel Beitenu, Shas, Labour, United Torah Judaism, and Jewish Home.

THE UK’S ROLE IN THE MIDDLE EAST PEACE PROCESS

The UK’s position on the Arab-Israeli conflict is clear. We believe that there is no viable alternative to a two-state solution based on the 1967 borders: a democratic and viable state of Palestine must live peacefully alongside an Israel secure from attack and recognised by its neighbours. Jerusalem must be the capital for both, with a just settlement for refugees.

The Arab Peace Initiative is an excellent basis for progress towards these goals. We are working with our partners – including the EU and the new US Administration – to pursue the peace process with vigour.

Actions by both Israelis and Palestinians have contributed to the crisis that has characterised their relationship in recent years. We are friends of both the Israelis and the Palestinians, and we believe that this gives us the opportunity to talk openly and frankly to both sides to encourage them towards peace. We continue to help to support the peace talks.

The UK acknowledges and understands Israel’s legitimate concerns over its national security. Israel’s interests are linked with those of the 22 states of the Arab League, and an essential aspect of the two-state solution is that Israel be not only officially recognised by its neighbours, but also feel safe from aggression. The Arab Peace Initiative offers a clear way forward.

The negative effect that the continued rocket attacks against Israel have on the peace process should not be underestimated.

We are committed to the establishment of a viable Palestinian state and, over three years, we plan to provide over £250 million to help the Palestinian people and build the institutions of a future Palestinian State.

For more information, go to: Middle East Peace Process on the FCO website.

THE UK POSITION ON JERUSALEM


Jerusalem was supposed to be a 'corpus separatum', or international city administered by the UN. But this was never set up: immediately after the UNGA resolution partitioning Palestine, Israel occupied West Jerusalem and Jordan occupied East Jerusalem (including the Old City). We recognised the de facto control of Israel and Jordan, but not sovereignty. In 1967, Israel occupied East Jerusalem, which the international community continues to consider is under illegal military occupation by Israel. Our Embassy to Israel is in Tel Aviv, not Jerusalem. In East Jerusalem we have a Consulate-General, with a Consul-General who is not accredited to any state: this is an expression of our view that no state has sovereignty over Jerusalem.

The UK position was expressed formally in April 1950, when HM Government extended simultaneous de jure recognition to both Jordan and Israel. However, the statement withheld recognition of the sovereignty of either Jordan or Israel over the sectors of the city which each then held, within the area of the corpus separatum as stipulated in UN General Assembly Resolution 303 (IV) of 1949. In the British view, no such recognition was possible before a final determination of the status of this area, although HM Government did recognise that both Jordan and Israel exercised 'de facto authority' over those parts of the city and area which each held.

After the 1967 war, with Israel occupying all of Jerusalem, the Israeli Government immediately extended its civil law to the whole city, simultaneously greatly enlarging the municipal boundaries into the West Bank. This purported annexation of East Jerusalem was reaffirmed in 1980 when Israel enacted its 'Jerusalem Law', formally declaring East and West Jerusalem together, 'whole and united', to be 'the capital of Israel'.

The UK rejects these Israeli measures to change the status of Jerusalem. The UN Security Council unanimously adopted Resolution 478 of 1980 in response to the Israeli annexation, declaring it to be a violation of international law; the British Government has reiterated and amplified this position many times since.

HM Government's formal position is based on the 1950 statement: it recognises that Israel exercises de facto authority in West Jerusalem and, from 1950 to 1967, recognised that Jordan exercised de facto authority in East Jerusalem. Since the war of 1967, HM Government has regarded Israel as being in occupation of East Jerusalem, and in this connection subject to the rules of law applicable to such an occupation, in particular the Fourth Geneva Convention of 1949. HM Government also holds that the provisions of Security Council Resolution 242 on the withdrawal of Israeli armed forces from territories occupied in the 1967 war applies to East Jerusalem. The Venice Declaration and subsequent statements (both by the UK alone and with EU partners) have made clear that no unilateral attempts to change the status of Jerusalem are valid.

The UK believes that the city's status has yet to be determined, and maintains that it should be settled in an overall agreement between the parties concerned. The Declaration of Principles and the Interim Agreement, signed by Israel and the PLO on 13 September 1993 and 28 September 1995 respectively, left the issue of the status of Jerusalem to be decided in the 'permanent status' negotiations between the two parties.

DEFENCE

The Israel Defence Forces (IDF) comprise an Army of 125,000 regulars, of whom 100,000 are conscripts, and an additional 460,000 reservists; an Air Force of 13 squadrons, manned by 32,000 regulars, of whom 22,000 are conscripts, and an additional 5,000 reservists; and a Navy manned by 8,000 regulars, of whom 3,000 are conscripts, and an additional 2,000 reservists. There is also a paramilitary Border Police force of 6,000 responsible for control of frontiers, as well as responsibility for security in Jerusalem.

Israel has compulsory military service; both men and women are called up at the age of 18. Some 60% of Israeli women and 72% of men are actually conscripted. Compulsory military service is 36 months for men and 24 months for women. Men are required to do reserve duty until the age of 40, and some women until the age of 30, although reserve duty obligations vary depending on the unit. There are limits of 36 days for soldiers and 70 days for officers over any three-year period. There is continuing controversy in Israel about the exemption from military service of Orthodox Jews studying in religious seminars (yeshivot).

The IDF is responsible for securing all international borders around the State of Israel, including the control of airspace and coastal waters. The IDF is the occupying power in the Occupied Territories and therefore acts as the interface between the State of Israel and the Palestinians.

The Co-ordinator for Administration in the Territories (COGAT) is a Major-General who answers to the Defence Minister and the IDF Chief of Staff. COGAT is also responsible for liaison with the International Community and NGOs operating in the occupied territories.

Since Israel completed its disengagement from the Gaza Strip in September 2005, IDF Ground Forces are now relocated outside the Strip. However the IDF continues to control the airspace over Gaza and coastal waters. Restrictions on movement are imposed on personnel and goods entering and leaving the Gaza Strip.

HUMAN RIGHTS


The UK remains concerned about the human rights situation in Israel and the Occupied Palestinian Territories, in particular Israel’s failure to improve movement and access restrictions for Palestinians, the continued construction of settlements and the barrier in the West Bank, and whether Israel’s use of force is always necessary and proportionate.

Annual Report on Human Rights 2008 [PDF 5.72MB]

UK SUPPORT ON HUMAN RIGHTS

While the UK recognises Israel’s right to protect itself against terrorist attacks, the Israeli government is called upon to do so in full compliance with its obligations in international law.  The UK works with Israeli ministers, officials, and the military to address matters of policy.  The UK continues to raise a range of human rights concerns with the Israeli authorities, including on the construction of settlements and route of the barrier, the conduct of Israel’s armed forces, Palestinian movement and access, and the humanitarian situation in the Gaza Strip. The UK supports a number of Israeli NGOs which work on human rights issues.

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