Israel: The Week Ending June 25th

New Government Begins to Act, COVID Returns to Israel,Uncertainty about Gaza, Washington and Jerusalem and new day, and Business.

POLITICS

The new government is almost two weeks old (12 days to be exact), and so far, the change has been noticeable. For the first time in years, one sees ministers working in a collegial manner. With Israel’s new outbreak of Covid-19 (see below) traced to those who returned from abroad with their unvaccinated children, Prime Minister Bennett quickly headed to Ben Gurion airport together with Transportation Minister Merav Michaeli and Health Minster Nitsan Hurwitz. The trio made a series of decisions on the spot, including use of a separate terminal for passengers coming from more severely infected locations. It was striking that Bennett did not try to hog the credit and that he made sure the two ministers, who had been his bitter political enemies —just months before — were part of the presentation.

The government faces a significant challenge in passing an extension of the Citizen Law. This law bars Palestinians from becoming citizens of Israel through marriage. The law was initially passed when it was discovered a terrorist had gained unlimited access to Israel by becoming a citizen in this manner. In contrast, there are likely many cases of true love between Palestinians from the West Bank and Israel Arabs. I can think of one Arab Israeli town, Barta, divided in two (between Israel and the West Bank) after the 1948 war. While physically reunited today, the rights of the citizens in each half of this town are starkly different. Love no doubt blossoms between residents across the two sides of the town. 

The Ram party and parts of Meretz who have always opposed the Citizenship Law said they could not support the law’s extension. Ironically, the Likud, which has always been the driving force behind the Citizenship law, will not support its extension, in order to create problems within the coalition. I expect a solution will be found, since no one within the coalition wants to see the government fall. The one Yamina MK, who refused to support the government, now indicates his willingness to support this law and maybe rejoin the new coalition.  

In the meantime, the Likud has been singing one song: “This government is illegitimate.” The only ones more upset are the ultra-Orthodox, who have been incessantly cursing the government. Having a successful modern Orthodox Prime Minister is their worst nightmare.  

There have been two changes this week in Israeli policy: Foreign Minister Yair Lapid publicly criticized the Polish government for passing a new law that would stop Holocaust victims, or their descendants, from reclaiming property in Poland. Israel also joined the US in a UN resolution condemning China for its treatment of the Uyghurs. This is the first time in a long time that Israel voted against China, which routinely votes against Israel at the UN.

Many other challenges will, no doubt follow, but the Bennett-Lapid government is off to a good start so far.

COVID–19

I am discouraged to have to add this section back to the newsletter. As of an hour and a half ago, an indoor mask mandate has been reinstated in Israel. The number of new Covid-19 cases found in Israel has risen from a few a day, to 219 yesterday, and is expected to continue to rise. Most of the cases are school children who have not been vaccinated. These latest cases can all be traced back to two families who returned from overseas and did not keep their children in isolation, as required by law. It seems those infected all contracted the Indian (Delta) variant, which is considerably more contagious. However, while this variant seems to be able to widely infect, it does not necessarily make unvaccinated people sick. 

The government's response to the new Covid wave has been mixed. The Corona cabinet was reestablished, and an effort to gain control over those returning from overseas had been undertaken. The opening of Israel to foreign tourists has also been delayed at least a month, to date, to August 1st.

The reaction in the school system has been less than rapid. New Education Minister Dr. Yifat Shasha-Biton, who gained prominence as the chairperson of the Knesset Committee on Corona, was more of a hindrance to the government's actions than a supporter. Shasha-Biton's high profile persuaded Gideon Saar to give her a place in his party, and her Doctorate in Education made her his choice for Education Minister. Unfortunately, her Covid skepticism stopped her from ordering the reinstatement of mask-wearing, even in the affected towns. Frankly, the schools and the youth movements in the schools should have been immediately closed. Now I fear it is too late, and it will be difficult to stop the spread.

PRIDE PARADE

Thousand turned out for the annual Tel Aviv Pride parade. It took place without the massive numbers of tourists who usually attend.

DEFENSE

It's unclear whether or not we are heading to a new confrontation with Hamas in Gaza. On the one hand, Hamas keeps threatening that if they do not get money for reconstruction, and the regular money they were receiving for Qatar, they will begin some sort of military action. For three days, they launched balloons at southern Israel. However, Israel responded with heavy bombing of Hamas assets in Gaza. For the moment, the balloon firebombs have stopped. 

Israel is demanding progress toward the return of the bodies of the two soldiers who died in 2014, as well as the homecoming of two living civilians who entered Gaza, before allowing the Qatari money in. All the rebuilding funds are now designated to go through the Palestinian Authority, and not through Hamas — Conditions that Hamas rejects. In the meantime, today, Israel eased some of the restrictions on the Strip that included the distance that Gaza fisherman can go from the coast.

There has been a mysterious attack on a factory making centrifuges in Iran. Most of the details, including the most important one — i.e. was the attack successful — remain shrouded in mystery.

WASHINGTON/JERUSALEM

Talks continue between the United States and Iran on a new agreement. Those talks have not gotten to the finish line, and it's not clear that it will. Israel under the new government has changed its strategy, from burning your bridges opposition under Netanyahu- to continued opposition, however attempting to do it constructively and accepting that it cannot stop the agreement, but can improve either the agreement or Israel's strategic position if it is approved. The visit of Chief of Staff Avi Kochavi is an example of that. For the first time, someone other than the Prime Minister was allowed to discuss the agreement with the Americans, who received Kochavi warmly. Kochavi discussed both the changes Israel would like to see in the agreement and what Israel might need if it is signed.

BUSINESS

The Israeli company Iron Source, specializing in mobile advertising, is going public through a SPAC, that will value the company at $11.1 billion, the highest sum ever received by an Israeli company going public. The company's founders will divide up $1.5 Billion, creating an additional 230 Israeli dollar millionaires. An additional $800 million will be invested in the company.

Transmit Security has $543 million, giving the company a value of 2.2 billion. A large portion of the funds raised will go to existing employees and investors.  

Firebolt has raised $127 million this week, and Mitga, specializing in cybersecurity for cars, raised $25 million. Tonkean, who has created a codeless platform to establish business processes, raised $50 million. Equinox raised $20 million, and Light Spin $16 million … and the list goes on …

Meanwhile, those laid off because of Corona, who are age 45, or younger, will see their unemployment benefits end next week.