Israel’s hard-right government has successfully passed a significant clause of its controversial judicial reform package in the parliament, despite facing months of mass protests and concerns raised by its key ally, the United States.
Prime Minister Benjamin Netanyahu and his coalition allies approved the bill, with the opposition lawmakers boycotting the vote and expressing their disapproval via shouts of “shame, shame”.
Here’s all you need to know about the judicial overhaul and the controversy behind them.
News agency AFP reports that the bill, which was passed with 64 votes in the 120-seat Israel chamber, seeks to limit the Supreme Court’s powers in overturning government decisions deemed “unreasonable” by the judges.
The “reasonableness” clause is the first major part of the reform package to become law, and other proposed changes include granting the government more influence in appointing judges.
Opponents of the reform, who come from various political, social, and religious backgrounds, accuse Netanyahu of a conflict of interest, especially as he faces corruption charges in court.
The nation’s Netanyahu-led coalition government, which includes far-right and ultra-Orthodox Jewish parties, contends that the proposed changes are necessary to achieve a better balance of power.
However, since the unveiling of the reform package in January, it has triggered one of the largest protest movements in Israel’s history.
The controversy surrounding the judicial reform has sparked a heated debate in Israel and has also drawn international attention to concerns about potential implications for the country’s democratic foundations, reports AFP.
Critics argue that the proposed judicial changes could lead to a more authoritarian government by weakening the checks and balances on the Israeli executive.
During the marathon parliamentary debate that happened before the vote, defending the amendment, Justice Minister Yariv Levin, the driving force behind the reform, said that it aims to restore the balance between the government branches.
He said that the government had taken a “cautious path,” adding that “there is no reason to fear this amendment. There are many reasons to see it as an important step in returning the balance between the government branches.”
However, opposition leader Yair Lapid criticized the move, considering it a “defeat for Israeli democracy.”
“The government can decide a policy but not change the character of the State of Israel, and that’s what happened today,” said Lapid.
Washington, Israel’s traditional ally, as per AFP, has also repeatedly expressed concern over the political turmoil surrounding the reform package and described the recent vote as “unfortunate.”
Weighing in on the matter, US President Joe Biden, as per a White House statement, said that “major changes in a democracy, to be enduring, must have as broad a consensus as possible.”
“It is unfortunate that the vote today took place with the slimmest possible majority,” said the statement.
In response to the parliamentary vote, the Histadrut trade union confederation threatened a general strike and called for the government to resume negotiations with the opposition.
As per Reuters, within minutes of the vote, a political watchdog group and Lapid, the centrist opposition leader said they would appeal against the law at the Supreme Court.
The judicial overhaul has triggered massive protests throughout Israel in recent weeks, with demonstrators expressing concerns about the overhaul’s impact on Israeli democracy and the tech sector.
As per a survey conducted by Start-Up Nation Central, a non-profit organisation, it has also pushed nearly 70 per cent of Israeli startups to take measures to relocate parts of their businesses outside of Israel.
Reuters reports that business groups have also pointed to the proposed changes as a reason for a 70 per cent decline in tech fundraising during the first half of the year.
The survey, based on responses from professionals representing 521 companies, found that 68 per cent of Israeli startups have already taken active legal and financial steps, such as withdrawing cash reserves, changing headquarters location outside Israel, relocating employees, and conducting lay offs.
Moreover, 22 per cent of companies have diversified their cash reserves outside of Israel, and 37 per cent of investors report that companies in their portfolios have withdrawn some cash reserves and moved them abroad.
Israel’s tech sector is a significant driver of economic growth, contributing 15 per cent of the country’s economic output, 10 per cent of jobs, more than 50 per cent of exports, and 25 per cent of tax income.
After the vote in Knesset, Tel Aviv’s main share indices experienced a significant drop of up to 2.5 per cent, and the shekel also lost value against the dollar by approximately 1 per cent.
To express their dissent, a forum of approximately 150 of Israel’s largest companies went on strike, and two major malls, Azrieli and Big, have announced the closure of their stores in their shopping centres, reports Reuters.
(With inputs from agencies)
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