Israel Update Week Ending December 24
Sullivan in Israel, Herzog Call Putin, New Political Poll,Housing Prices and more
FOREIGN AFFAIRS
Israel’s major diplomatic event of the week was a visit by US National Security Advisor Jake Sullivan to discuss the state of talks with Iran in Vienna. Before Sullivan’s visit, Israeli officials feared the US was about to cave to Iran. However, by all reports, the meetings went well. Furthermore, the sense following Sullivan’s departure was that Israel and the US are on the same page. The US position is that time is running out to achieve an agreement — and so far, they have seen no sign that Iran is serious. So what happens next remains the big question.
Today Israeli President Isaac Herzog called Russian President Vladimir Putin to wish him a Happy Novy God. In addition, Herzog said he invited Putin to the opening of the Chaim Herzog Museum of the Jewish soldier that opens next year.
POLITICS
Israel’s Channel 13 News conducted a poll this week. This was the first positive poll to come out favoring the new government. For the first time, this poll showed former Prime Minister Netanyahu's Likud party lost two seats, while the Yemina Party of Prime Minister Bennett gained three seats. So overall, while the current coalition's numbers were down slightly, all the current coalition members would have enough electoral support to make it into the next parliament. Luckily, there is no election on the horizon, so this is very theoretical.
While addressing an economic conference, Ra'am (United Arab List) leader Mansour Abbas stated: “The State of Israel was born as a Jewish State, and it will remain one,” The declaration created a series of waves both positive and negative. Other Israeli Arab politicians attacked Abbas, while many Jewish Israelis hailed the statement. It marks a significant transformation. Until now, all Israeli Arab politicians have called for Israel to be “a state of all its people,” as opposed to being “a Jewish State”. If Abbas's position becomes widespread and accepted by the Palestinians, our conflict could end at some point.
At the end of a six-year investigation which initially alleged extensive illegal activity, Arye Deri, head of the Shas Party, agreed to plead guilty to income tax fraud, resign from the Knesset, and pay a NIS 200,000 shekel fine. The plea deal permits Deri to run for a seat in the next Knesset, though the agreement might stop him from becoming a government minister. This is the second time Deri has run afoul of the law, nevertheless, nothing has diminished his popularity within Shas and among his supporters.
COVID–19
This week Israel expanded the list of countries considered “Red” (i.e., where a travel ban has been imposed) to include the United States and Canada, and the rest of Europe. With the exclusion of a few specific exceptions, Israelis are prohibited to travel to these countries. People who return to Israel from a “Red” country are required to quarantine at home for seven days— if they are fully vaccinated, or in a “Corona Hotel” if they are currently unvaccinated.
The number of new daily cases of Covid infections in Israel is up; doubling from last week, yesterday there were 1,482 positive test results with the percent of positive results at 1.4%. The numbers of seriously ill is beginning to inch up after dropping to 78 it’s now up to 88. However, no new significant restrictions have been imposed. Like everywhere in the world, the level of uncertainty about the Omicron variant is high. Despite the recommendation of the vaccine committee to administer a fourth dose of the vaccine to those 60 plus, health workers, and the immunocompromised, as of this writing, the Ministry of Health has not approved its own committee's guidance.
Testing seems to be one of the best-organized aspects of Israel’s response to Covid. Late afternoon on Sunday, I received a call from the Knesset notify me that one of the correspondents who had been together with me in the studio had tested positive for Covid. Although a week had already passed, they informed me that I had to get a test and go into quarantine, until I received a negative result. I immediately set off to the nearby testing center, conveniently located two blocks from my apartment, accompanied by my son. It took about 3 minutes to get processed, and and another 2 minutes to get tested. We were finished and out within 10 minutes. Six hours later, we both received text messages that our test results were negative.
In a possible breakthrough in Coronavirus treatment, the Israeli BioTech company, Amorphical reported that 100% of the 18 patients in the recent Phase II trial of its Covid-19 drug (all of whom suffered from moderate–to–severe Covid) recovered in a matter of days and were discharged from the hospital. Of the 19 people who received the placebo, six were transferred to the ICU, and two died. According to company CEO Yossi Ben, the Amorphical drug (whose main ingredient Amorphous Calcium Carbonate), which changes the pH around cells, and thereby prohibits the virus from replicating, will work against all Covid variants. Expanded Phase III trials will begin soon.
DEFENSE
This morning, the IDF demolished structures in the illegal settlement of Homesh, built in response to the death of Yehuda Dimentman, murdered by terrorists last week, outside the Yeshiva at the location. Those terrorists were apprehended this week.
There have been reports today that a settler killed a 70 year old Palestinian women, in a hit and run collision this morning, in the West Bank. Hopefully, that settler will be swiftly arrested. It should be noted that the first Intifadah was sparked by a car accident.
HOUSING & ECONOMY
While significant inflation seems under control in Israel, one area that is clearly out of control is the cost of housing. According to latest reports, the cost of apartments across the country went up 10% this past year. Over the last ten years, every single government has pledged to reduce the price of apartments. This government has only promised to temper, and possibly stop the increases. None, but one for a short period, succeeded.
The underlying issue is simple, Israeli needs approximately 80,000 new apartments each year to keep up with demand. For the last decade, construction of new apartments has averaged 50,000, or less. Undoubtedly, the fact that not enough apartments are being built is the major cause of the market-driven rise in prices. However, the government has not made use of the one resource that would have the most significant impact on prices — and that is the fact that the government owns almost all the land.
To date, the Israeli government continues to try to sell land for the highest possible price. Since land is the most costly aspect of building in Israel, the government is most responsible for the high cost of housing, by maximizing its income from land sales. Imagine if the government had an auction in which the winners would not be those who paid the most for land, but those who guaranteed the lowest price for apartments built. Unfortunately, the government has shown no interest in that approach.
Future Meat Technologies, announced it has raised $347 million, in Series B round of financing. The round was co-led by ADM Ventures, (the venture-investing arm of ADM, a global leader in human and animal nutrition); together with global investor in leading technology companies, Menorah Mitvachim pension and insurance fund, which manages over $85 billion in assets, and S2G Ventures. Other investors included: industry leaders Tyson Ventures, the venture capital arm of Tyson Foods and Rich Products Ventures, Manta Ray Ventures, Emerald Technology Ventures, ADM Capital (Cibus Fund), and Bits x Bites. The company noted these investors represent massive support from key players in North America, Europe, and Asia.
