Israel Export & International Cooperation Institute Export Institute Director General Avi Hefetz warned that Israeli industries are vulnerable to a European crisis, Globes reported.

The recent slump in European stock markets prompted an IEI assessment warning of "real risk to Israeli exports to the EU." An Institute study found that Israeli exports would be affected in both best-case and worst-case scenarios and that a second financial crisis, similar to that of late 2008, is increasingly likely.

According to Hefetz, chemicals is one of the most vulnerable industries to a European crisis, as is the agriculture industry. In contrast, two important export industries - pharmaceuticals and electronic components - have low exposure to the EU, and are likely to weather the storm better.

The Export Institute's worst-case scenario warns that should Greece falter or default on its debt payments – or worse, withdraw from of the eurozone, it would have severe repercussions on financial markets, which could cause a European-wide economic crisis, and then a global crisis.

Under the IEI's less severe scenario, most EU members would undertake painful austerity measures, which would slow EU recovery in the short term. This would also affect demand for Israeli goods.