An employee looks through an infrared scope placed on a weapon during a demonstration at a preview presentation at Elbit Systems, Israel's biggest publicly listed defense firm, in Netanya, Israel June 8, 2016. REUTERS/Baz Ratner/File Photo
JERUSALEM (Reuters) - Israel's defence industry faces layoffs, closures and a scramble to set up shop in the United States following the signing of a new U.S. military aid package that phases out Israel's ability to spend a quarter of the funds on its own businesses.
The 10-year, $38 billion (£29.3 billion) agreement, signed on Sept. 15 after a year of negotiations, comes into effect in U.S. fiscal year 2019. It constitutes the most military assistance Washington has ever provided to an ally, but was clinched only after Prime Minister Benjamin Netanyahu accepted concessions.
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