Stanley Fischer, Bank of Israel Governor, said during the World Economic Forum in Davos, Switzerland, that the victory of Hamas in the Palestinian elections will not destabilize the Israeli economy. .
Israeli online daily, Haaretz, reported that Fischer said during the International Herald Tribune, that Israel could maintain robust economic growth of 5.2 % even with what he described as the disintegration of the peace process.
Herald added that the economic growth is dependant on security in the area, adding that he believes that Israel "will take action to maintain that".
"When the peace process is advancing, the economy could grow more rapidly", Fischer said, "but it is not a harsh situation if the process stalls for a while".
The huge victory Hamas movement achieved in the legislative elections, winning 76 seats in the 132-member Palestinian parliament, has caused a political earthquake in the area, and triggered dozens of questions regarding its future.
Fischer stated that it is "impossible for Israel to negotiate with this group as long as its charter calls for Israel’s destruction".
He said that he hopes that the political reality Hamas gained after the elections will force the movement to change its charter and recognize Israel.
But he held out some hope that talks could be revived if the political reality of governing forced Hamas to change and recognize Israel’s right to exist.