I first want to congratulate and thank you for all your important work in the defense industries, industries that are essential to the defense of Israel.

We are threatened here in Israel more than anywhere else in the world.  We face enemies who don't hide their intentions toward us, and who continue to arm themselves and attack us in a way that no other country has ever had to endure – certainly not in terms of rockets and missiles – since Great Britain in World War II.

Our enemies don't just attack us physically; they impair our very right to defend ourselves against them.  For this reason, the job of defending the State of Israel is a unique one.  And so are the capabilities we have enlisted for this purpose.  Here in Israel, our passion and intelligence are our greatest advantages.

Incidentally, intelligence alone is not enough – it also takes great motivation to recruit our most talented people.  Many countries have talented people, but have been unable to recruit them for the vital task of defense.  But I can say confidently, from personal experience, that we have been able to enlist the finest minds.

This combination of intelligence and talent continues to produce the critical tools which defend us in the sky, on land and at sea. But it also generates financial benefits because of expanding foreign interest in our equipment – something that has been made evident here at this conference. This positive cycle allows us to  continue investing in the development of new products.

I said earlier at a smaller forum that, no matter how great the financial returns from the defense industries, we will still need to invest large sums to fund our dynamic security needs over the next decade.

This money can only come from one place: continued economic growth, which will require a reduction in taxes.  We live in a global economy today – increasing tax rates cannot be the way to achieve essential growth  Money, investments, and ultimately  development, will go wherever there are lower taxes.  But by reducing our own tax rates, we can increase the volume of economic activity in Israel and bring in much higher tax revenues.

I used to argue with the International Monetary Fund and with a friend of mine who worked there – who now happens to be Governor of the Bank of Israel.  Our arguments didn't   prevent me from appointing him to that position.  And there are still those who would argue with us about this today.  We will reduce taxes  to increase our tax revenue and spur economic growth.

But this will not be enough.  We have to take action in the field technology – both high and low.    I will expand on this soon, once we unveil our new economic program.  But it is clear to me that the "lo-tech" progress will be stimulated by revolutionizing the transportation system, making land available and better planning.  This will have a positive effect for all Israelis.  It will provide houses and apartments – the ability for people to own a home in their homeland.  This is no small thing.  It doesn’t have to be between Hadera and Gedera.  There are always security implications to take into account.

The bottom line is that we need continuous economic growth to fund Israel’s unique security needs.  I'm sure we will succeed in doing this.  Accelerated growth in this area will already be noticeable in the next few months because this strategy is already being implemented.  And more legislation is ready to be brought before the Knesset.  The parts which are relevant to this forum will be implemented in keeping with the decisions of both the Government and the defense establishment.

This strategy will include financial support and incentives for technology companies to keep them in Israel and even increase their activities here.  We can't  have our home-grown companies being sold as soon as they reach a certain size.  We won’t ever prohibit these sales, but we will increase the incentives to remain in Israel while also supporting large-scale expansion. 

Israel needs a stable economy and continuous economic growth  if we are to meet our exceptional security needs.  And the first one we have to address – one of a trio of threats – is the threat of missiles and rockets aimed at the State of Israel.

You are all doing crucial work in this regard.  I congratulate you again and promise you that, together, the government and the defense industries will continue to collaborate for the benefit of this country and to ensure that we stay three steps ahead of all the rest.

Thank you.