Netanyahu plays down leaks from ‘best ally’ US

▶ Israeli PM softens stance after strong initial response to spy claims

Israeli Prime Minister Benjamin Netanyahu said the US was his country’s “best ally”.

The comment came after a major leak of intelligence documents revealed Washington had spied on friendly countries, including Israel.

A trove of documents surfaced in March on social media platform Discord, stunning analysts and intelligence agencies by revealing the full extent of western support for Ukraine.

Among the leaks was the claim that the US had eavesdropped on Israeli security services and heard that “senior members” of the Mossad intelligence agency were encouraging others in the organisation to join anti-government protests.

Since January, protests have rocked Israel as demonstrators try to put a stop to Mr Netanyahu’s proposed judicial reforms.

Critics of the government say the reforms would give it influence over supreme court appointments and parliament the power to overturn rulings.

Mr Netanyahu has suspended efforts to pursue the reforms, but his government insists they are necessary.

Last week, he tried to play down the leaks, saying that political dissent was accepted.

“The truth is that the Mossad legal adviser said that under Israeli law, junior members of Mossad can participate in the demonstrations, not senior members,” Mr Netanyahu said.

Israel’s military and security services were “working hand in hand with me, as Prime Minister, to assure the security of the country”, he added. During an interview on NBC’s

Meet the Press, Mr Netanyahu called the reporting of the situation a “misunderstanding”.

He struck a different tone than earlier statements released by his office, which called the reporting “mendacious and without any foundation”. Mr Netanyahu’s reform push has prompted months of unrest and criticism from western allies, including US President Joe Biden.

Last month, Mr Biden issued his strongest condemnation to date of Mr Netanyahu’s plans. “Like many strong supporters of Israel, I’m very concerned,” he said. “And I’m concerned that they get this straight. They cannot continue down this road. And I’ve sort of made that clear.”

In addition to shaking the foundations of Israel’s security establishment, the upheaval has also dented the economy.

On Sunday, Moody’s cut the outlook for Israel’s sovereign credit rating.

The assessment follows widespread critique from Israeli economists of Mr Netanyahu’s plans. They have said that if the Prime Minister weakens the rule of law in the country, it will unnerve foreign investors.

Israel’s Finance Minister Bezalel Smotrich on Sunday said Moody’s decision was “not a big drama” and reiterated his stance that the government’s plan to overhaul the judiciary would help the economy.

But the head of Israel’s securities agency, who weighed in on the issue as she ended a fiveyear term on Sunday, said the downgrade was a serious warning and should push the government to rethink its plans.

Moody’s Investors Service on Friday lowered Israel’s outlook to stable from positive while affirming its sovereign credit rating of “A1”.

Much of its report focused on a government plan to overhaul Israel’s court systems.

Mr Smotrich told a session of parliament’s finance committee during a debate on the 2023- 2024 state budget that Israel’s credit outlook was previously lowered in 2020 and raised again last year.

“I take the opinion seriously but it’s not big drama,” he said.

“I don’t think economists are great experts on the judicial issue,” he said. Any damage to the economy would come from the “campaigns of lies against the reforms”, he said.