Israel Dealing With Quiet Domestic Unrest Following The Passing Of a Controversial Bill That Might Weaken The Supreme Court

A quiet upheaval in the nation has replaced angry protests after Israel’s Parliament passed a controversial bill this week that could limit the Supreme Court’s authority. This upheaval includes threats of mass emigration, resignations in high positions, army desertions, strikes, and capital flight.

After weeks of extraordinary protests that have paralyzed the Jewish state, the Israeli Parliament approved the divisive measure that limits judicial checks on political authority and is a key component of Prime Minister Benjamin Netanyahu’s ambition to restructure the nation’s justice system.

The opposition boycotted the bill’s final vote in protest, and the law passed on Monday with 64 votes in support and 0 votes against it.

It was the first significant piece of legislation in the government’s much-debated judicial reform proposals to pass.

There were numerous last-minute attempts in the Knesset (Israel’s Parliament) to change the legislation or reach a wider procedural agreement with the opposition, but all of these failed.
Following the passing of the first bill, credit rating firm Moody’s Investors Service issued a warning on Tuesday about “negative consequences” and “significant risk” for Israel’s economy and security situation.

In April, Moody’s changed the outlook for Israel’s credit from “positive” to “stable,” noting a “deterioration of Israel’s governance” and unrest related to the government’s attempt to fundamentally alter the judiciary.

The wide-ranging breadth of the government’s measures, according to Moody’s, “in particular, we believe could materially weaken the independence of the judiciary and disrupt effective checks and balances between the various branches of government, which are important aspects of strong institutions.”

It added that “The executive and legislative institutions have become less predictable and more willing to create significant risks to economic and social stability” since Israel has a written constitution and heavily relies on judicial scrutiny and review.

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Additionally, Moody’s said that some of its previous worries about the proposed reforms’ effects on Israel’s economy are beginning to come true.

Even yet, Moody’s warned that the prediction does not “incorporate a negative effect from a prolonged period of social and political tensions” and that the country’s economy will still expand at a pace of 3% both this year and in 2024.