In his book “The Abyss: Bridging the Divide Between Israel and the Arab World,” former MK Eli Avidar described a conversation between former Foreign Minister Shlomo Ben Ami and his Qatari counterpart, who asked what Israel wants in return for concessions.
Ben Ami replied: “the end of the conflict,” and the Qatari minister replied: “This is something I cannot give you; no one can.”
The conflict within Israel surrounding the judiciary that has preoccupied us since the current government was sworn in has yet to be decided – and judging by the compromises under discussion, it is liable to be with us for a long time.
One of the proposals is for representatives of the governing coalition and the opposition to make progress on the less divisive issues and postpone for a year the nut that will be the hardest to crack, the composition of the Judicial Appointments Committee.
Spreading the judicial reform into installments is the worst thing that could emerge from the discussions in the President’s Residence. It may be a convenient solution for the coalition, which is interested in presenting some kind of achievement to its supporters and weakening the anti-government protests. However, as long as this issue is not resolved, the damage – especially to the economy – will keep piling up.
Bank of Israel Governor Prof. Amir Yaron presented on Tuesday, at the Eli Hurvitz Conference on Economics and Society in Jerusalem, some of the costs we have already paid as a result of the government's coup: the shekel depreciated 10 percent against the dollar (which increased inflation by 1 percent); Israel’s risk premium rose; most new startups founded by Israelis are now located and incorporated abroad, and the performance of the Tel Aviv Stock Exchange lags behind its foreign counterparts.
All of these are the result of Justice Minister Yariv Levin’s plan to weaken the judiciary, to take over the Judicial Appointments Committee, to severely undermine the status of the legal advisers of government ministries and to make the Supreme Court more political than ever.
The cost to Israelis is great. The increase in inflation and in the interest rate in the wake of the government coup attempts are immediately translated into higher monthly mortgage payments, which have soared by over 1,000 shekels ($270) on average over the past year. The underperformance of the TASE adversely affects future pension payments.
A decline in foreign investment will unavoidably also lead to a decline in the state’s revenue from taxes – and, as a result, to budget cuts. These are no longer speculations that might come true: They are already being realized.
It’s convenient for Finance Minister Bezalel Smotrich to attribute the threats to the economy to global causes – and these genuinely do exist, but the current Israeli government is intensifying these threats on account of the government coup that it is advancing.
In these circumstances, it’s obvious that – in order to end the uncertainty – it’s vital that we reach a swift compromise that will not harm Israeli democracy.
If such a compromise is impossible, then Levin’s ideas must be shelved immediately, and a committee of experts established to determine the corrections that should be made to the judiciary. A solution along the lines of “We’ll enact whatever we can now and legislate the other parts later” will perpetuate the uncertainty, and only add to the burden on the Israel public.
The government has no power to reduce the uncertainties that originate abroad, such as a recession, global inflation or the war in Ukraine – but it has total control over the uncertainty that it created because of Levin’s plan. Retreating from it will yield immediate economic benefits, such as strengthening the shekel, lowering the cost of living and stimulating the TASE and foreign investment.
If the government coup is canceled, all Israelis will feel it in their wallets. As long as that doesn’t happen, it means that the Israeli government has placed the cost of living and the financial health of its citizens at the bottom of its priorities.
The danger to Israel’s judiciary and to the country’s democracy cannot lodge itself on the Israeli agenda for a prolonged period. It is a conflict that must come to an end as soon as possible – because the price that it is exacting, and will continue to exact, will be painful for every Israeli, and especially to lower earners.
Israelis Already Pay a High Price for Netanyahu's Coup. One Compromise Could Make It Worse
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01.06.2023
In his book “The Abyss: Bridging the Divide Between Israel and the Arab World,” former MK Eli Avidar described a conversation between former Foreign Minister Shlomo Ben Ami and his Qatari counterpart, who asked what Israel wants in return for concessions.
Ben Ami replied: “the end of the conflict,” and the Qatari minister replied: “This is something I cannot give you; no one can.”
The conflict within Israel surrounding the judiciary that has preoccupied us since the current government was sworn in has yet to be decided – and judging by the compromises under discussion, it is liable to be with us for a long time.
One of the proposals is for representatives of the governing coalition and the opposition to make progress on the less divisive issues and postpone for a year the nut that will be the hardest to crack, the composition of the Judicial Appointments Committee.
Spreading the judicial reform into installments is the worst thing that could emerge from the discussions in the President’s Residence. It may be a convenient solution for the coalition, which is interested........
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