A New Government In Israel

Israel the week ending June 18th

POLITICS

This past week was one of the most consequential weeks in Israeli politics. Yet, now that we have reached the turning point most of us believed might never come to pass, it seems anti-climactic. Benjamin Netanyahu is no longer Prime Minister. While all signs pointed to that happening, none of us could really believe it. Last Friday, I filed a story for Newsweek on the prospects of the new government. I thought the chances of the new government being approved were good. However, I told my editor to hold the piece until after the Knesset vote, since many of us could not believe “the magician" was out of tricks. 

Even as the moment of the transition approached, it was hard to believe it could happen. I had the privilege of being on-air at i24News when the vote was expected. When I arrived at the studio, and spoke to the various news people there, we all shared the same feeling — Could this indeed be happening?We were all tense. As the vote took place, there was real drama. One of the members of Mahmoud Abbas's party announced he would not vote, endangering approval for the new government.  

The first vote to take place was for Knesset Speaker. That vote depicted the true strength of the two new blocs. The candidate supported by the Likud received 53 votes; while Yesh Atid MK Mickey Levy, candidate of the “Change Bloc” received 67 votes — with the Arab Israeli parties placing their votes for Levy. 

Then came the vote to approve the new government. We all held our breath. When I heard that Ayman Odeh and Ahmed Tibi had stepped outside before their names were called, I knew it was over and told my anchor that Bennet had won. While eventually Odeh and Tibi voted against the government, they would not allow the vote to fail, and enable Netanyahu to remain Prime Minister. The pair of MKs stepped outside during the ballot count. When it was clear they could vote against the government and the new coalition would still be voted in, they reentered and cast their ballots. The new government was approved 60-59.  

I shared the studio that night with two people (beyond the talented anchor Benita Levin), for the first hour, with a Gideon Sa'ar New Hope party supporter, who was, as expected, happy about the outcome. During the second segment, we were joined by Michael Kleiner, a former Likud MK and head of their court. Beyond repeating the standard Likud talking points (that I had heard ad nauseum, both in-person, when I appeared with Likud members during the previous week, and of course, on TV) — i.e. that Bennett had “stolen right-wing votes to become Prime Minister,” — in a moment of honesty, Kleiner admitted that the new government would probably improve relations with the Democratic Administration in Washington, and moreover, that the inclusion of Abbas’ Ra’am Party was a significant step forward for Israel.

One cannot discuss the dramatic evening without mentioning the profoundly unacceptable behavior of the Likud, and even more so, the ultra-Orthodox Knesset members, during Bennett's inaugural speech. The Knesset is not known for its decorum. Yet, never has there been more childish behavior by members of Knesset, who interrupted every second word out Bennett's mouth. The best speech of the evening was that of Yair Lapid, who stated he would not deliver his planned remarks. But, instead, wanted to apologize to his 87-year-old mother, who rarely makes the trip to Jerusalem. He was embarrassed she had to see Knesset's behavior and was sorry he asked her to come.

The next day, I was on the air again, for another historic moment — the traditional photograph of the new government with the President. So two things were clear from the picture … first and foremost, how happy President Rivlin was. To say that he (a lifelong Likud member) and Netanyahu were not best friends would be an extreme understatement. However, it was clear Rivlin was embracing the moment and happy that he could host the new government before his upcoming retirement. Second, this new government crosses nearly all spectrum of Israeli society, with the exception of the ultra-Orthodox.  

Now to the government itself … I am very optimistic that this new government will accomplish many good things for the State of Israel. First and foremost, it will reintroduce a state of professionalism into the government, after years of neglect and very much one-person rule. The only key to an appointment had become how loyal an individual was to Netanyahu. While many new ministers do not have expertise in the fields over which they are responsible, they are, almost without exception, hard-working, bright people, who will know when to turn to outside experts. 

Furthermore, since none come from a party with tens of thousands of members, all of whom expect an inside track toward getting a cushy political appointment, the new cabinet will pull from all aspects of the society to find the right people for the necessary positions. Prime Minister Bennett set the right tone at the first cabinet meeting when he called on the new Ministers to take their time choosing staff to ensure they get the best people.

The lack of organizational process clearly extended to the day-to-day operations of the Prime Ministers' office. According to reports, when Naftali Bennett’s staff arrived, they were shocked to find chaos, i.e., not an organized office befitting the Prime Minister. There are also reports that on his last day in office, Netanyahu ordered the destruction of many documents in clear violation of Israeli law. 

His 30-minute transition meeting with Bennett would be a joke if it were not so serious. Netanyahu, more than most, kept his actions and promises close to the vest. How Bennett will learn about all of them is not clear. Since the Rabin assassination, this is the first time there was not an orderly transfer of power. This was the first time an outgoing Prime Minister was so petty, as not to show up for the traditional transfer of power ceremony and toast.

The first few actions of the new government appear decidedly positive. The first action likely to be creation of a National Commission of Inquiry into the tragedy at Meron, the largest civilian disaster in Israel's history. In addition, the new government commendably handled the hot potato they were handed, in the form of the March by the extreme-Rightest, starting at the Damascus Gate. 

This morning, there were reports that thanks to the actions of the new Minister of Health, Israel will be transferring 1.2 million doses of the Pfizer vaccine to the Palestinian Authority (100,000 doses have already been administered). Providing these doses is a no-brainer, and why the previous government did not do so remains an unanswerable question. When I asked various people across the political spectrum, the only answer I received was incompetence.

I had hoped to write about the expectations of individual ministers, but that will have to wait for the coming weeks.

Defense 

There is a growing sense that it is only a matter of time until the next action with Gaza. Hamas resumed its launch of incendiary balloons toward southern Israel, causing several fires. This time, the government chose not to show restraint, and implemented a series of air raids against (likely empty) targets in Gaza. The government knows it cannot leave the initiative to Hamas. Although it’s unclear what can be done differently next time, in contrast to actions taken this past time, that would reestablish Israel’s deterrence vis-a-vis Hamas.

Economy 

WalkMe, the Tel Aviv-based software company, raised $287 million with an IPO on the Nasdaq. It joins a long list of Israeli companies that have gone public, or are about to go public this year. Claroty, which provides cyber defense for critical infrastructure, raised $140 million. The company, which was founded by Team 8 in 2015, joins the list of Israeli unicorns (private companies worth $1 billion or more).

Bank of Israel has issued an interesting report on what needs to be done to improve Israel's economy. I will try to write more about the report next week. Still, the significant items in the report were the need to invest more in human and physical infrastructure — especially in the ultra-Orthodox and Arab communities. In addition, one of the stated goals of the new government is to increase the percentage of Israelis in high-tech from 10% to 15% of the economy. A challenging goal that I hope to discuss more.