Sweeping Judicial Reform In Israel Ignites Protests And Economic Concerns

In a move that has sparked the largest protests in the nation’s history, Israel’s government, led by Prime Minister Benjamin Netanyahu, has passed a controversial law that significantly curtails the power of the judiciary. The judicial oversight law restricts the ability of Supreme Court’s judges to overturn government decisions and appointments deemed “unreasonable.”

According to Al Jazeera, the bill’s passage has led to widespread disappointment among protesters, who have vowed to continue their fight against the government. Members of the opposition in the Knesset abstained from the final vote as it became evident that Netanyahu’s far-right government was not open to compromise, leading to the breakdown of last-minute negotiations.

The newly passed law is part of a broader judicial reform that the government is advocating, aimed at further diminishing the power of the judiciary, which has long been a target of criticism from right-wing Israelis. Therefore, for many protesters in West Jerusalem, Monday’s vote is just the latest development in a years-long battle focused on ousting Netanyahu, especially after he was put on trial for corruption in 2020 – a legal case that is still ongoing.

As reported by Reuters, the law’s passage was met with immediate legal challenges. A political watchdog group and the centrist opposition leader announced their intention to appeal against the law at the Supreme Court.

Israel’s Economic Woes: Foreign Investment Dries Up, Assets Take A Hit

As Yahoo News reported, the United States, a long-standing ally of Israel, has expressed concern over the judicial reforms. President Joe Biden has consistently voiced concerns about Netanyahu’s efforts to curtail the judiciary’s power, even while the prime minister faces corruption charges.

As CNN reported, the enactment of the law also triggered economic fallout, as Tel Aviv’s primary stock indices plunged up to 2.5% following the Knesset vote, and the shekel’s losses against the dollar widened to approximately 1%.

Over the last three trading sessions, the VanEck Israel ETF ISRA, a U.S.-listed exchange-traded fund focused on Israeli shares, has experienced a decline of nearly 5%.

According to Vox, this new law is merely the initial phase in a broader scheme to dismantle checks on executive authority in Israel. Should the government’s subsequent plans be approved, Netanyahu’s administration would have the capacity to execute virtually any action.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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