The Guardian (USA)

Bank of Israel governor says judicial reform could hurt economy – reports

- Bethan McKernan in Jerusalem

The governor of the Bank of Israel has warned Benjamin Netanyahu that his new government’s proposals for sweeping judicial reform could damage the country’s economy, according to Israeli media reports.

Prof Amir Yaron met the Israeli prime minister on Tuesday, according to the Yedioth Ahronoth newspaper, after requesting an “urgent meeting”.

Yaron reportedly conveyed worries shared by fellow attendees at last week’s World Economic Forum summit in Davos that the overhaul of Israel’s justice system would erase democratic checks and balances, potentiall­y leading to a decision to lower the country’s credit rating and scaring away foreign investment.

Much of the country’s high-tech sector – which at 15.3% of GDP is the main engine of economic growth – is funded by outside investors.

The governor’s reported interventi­on comes after a public rebuke of the government’s plans by two of his predecesso­rs earlier this week, and a strike by several hundred tech sector employees in Tel Aviv’s “Silicon Wadi” on Tuesday.

An official statement released after the meeting at the Knesset said: “The governor of the Bank of Israel reviewed the state of the Israeli economy and the challenges it faces, both local and from an internatio­nal perspectiv­e.”

Netanyahu returned to office in December at the head of the most rightwing government in Israeli history: various elements of the coalition wish to annex the occupied West Bank, roll back pro-LGBTQ+ legislatio­n, limit freedom of speech and give the Knesset the power to overturn supreme court decisions.

Critics say this last point would help Netanyahu evade a conviction in his ongoing corruption trial, in which he denies all charges, and fundamenta­lly undermine democratic norms and civil liberties in a country with no formal constituti­on.

“Investors don’t just think about tomorrow, they are looking at the next decade. They do risk analysis: shareholde­rs are asking me, ‘What’s plan B? Should we take our funds out of the country?’ Investors need confidence that government­s and countries will behave like democracie­s,” said Eynat Guez, CEO and co-founder of Papaya Global, a startup unicorn developing workforce management software.

“The feeling in our sector is that politician­s like to use us as the face of the country when it suits them. So if they want to use us as poster boys, now they have to listen to our voices too.”

Tuesday’s hour-long strike at one point blocked traffic on a busy thoroughfa­re in central Tel Aviv, as marching workers held placards reading “No high-tech, no taxes.”

It follows major demonstrat­ions in cities across the country over the last few weekends which have managed to unite people of differing religious beliefs, ethnic background, income and political leanings in what is usually a highly polarised society.

Guy Tytunovich, CEO and founder of CHEQ, a cybersecur­ity company, said: “I am worried both as a citizen and as a CEO about democracy, but the strike on Tuesday and other actions are proof that there are ways for us to combat this.

“There is optimism that the government will have to listen … I’m willing to invest time and money into this cause because no one wants our country to turn into Turkey or Hungary.”

The judicial reforms must clear three Knesset plenum votes to become law. Israel’s Channel 12 News reported on Tuesday that the coalition has made overhaulin­g the legal system its top priority, and hopes to pass the bill by early April.

 ?? Maya Alleruzzo/EPA ?? Since returning to office in December, Benjamin Netanyahu has headed the most rightwing government in Israel’s history. Photograph:
Maya Alleruzzo/EPA Since returning to office in December, Benjamin Netanyahu has headed the most rightwing government in Israel’s history. Photograph:

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