Why is vaccinated Israel reinstating COVID restrictions?

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Israel has the highest full vaccination rate in the world and the fourth highest overall vaccination rate:

Vaccination rates

Israel is a vaccination leader.

Yet its government is reinstating COVID restrictions due to a surge in infections after reopening last month:

Israel COVID infections

Israel COVID infections have rebounded after opening.

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From the Jerusalem Post:

Starting August 20, the full green pass system will be in place again, and starting Sunday, masks will be mandatory in all outdoor gatherings….

The coronavirus cabinet approved new restrictions on Tuesday night, as senior government members admitted a lockdown in September is not a remote possibility anymore…

In addition, government offices will work with only 50% of their workforce in person, and the private sector will be encouraged to do the same.

Moreover, more stringent criteria to place countries under travel ban or travel warning will be formulated, leaving a very limited group of nations to be visited freely by Israelis without the need to quarantine upon their return regardless of their immunization status…
“The Delta epidemic is extremely contagious, and is spreading all over the world,” Prime Minister Naftali Bennett said…
“We need to prepare the public and public opinion for a lockdown in September”…
COVID hospitalisations have been increasing in Israel; albeit remain way below prior peaks:
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Israel COVID hospitalisations

Israel COVID hospitalisations rising.

However, COVID deaths remain very low:

Israel COVID deaths

Israel COVID deaths remains very low.

At some point, nations will have to learn to live with the virus. There needs to be a proper trade-off between maintaining economic and social freedoms and minimising deaths. The balance in Israel seems to be skewed too far towards the latter.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.