Tel Aviv Diary January 13, 2023

Fears Grow; Government Bulldozer Begins to Emasculation the Courts, Investments Down in 2022, and another Great Restaurant Review

POLITICS AND “JUDICIAL REFORM”

It's difficult to fully convey the anxiety felt by my friends and acquaintances about the actions of the new government. On one hand, daily life continues as usual — we work, walk our dogs, and meet up for coffee. However, the fear that we may be losing the country we love looms over us constantly. Some may think I am exaggerating, but this fear has become very real and has only intensified in recent weeks.

This week, Justice Minister Yariv Levin unveiled the first part of his plan for “Judicial Reform”. Levin’s “proposal” was not developed by the professionals within the Justice Ministry, but rather, a fully detailed plan he unveiled upon his arrival at the Ministry (likely with the assistance of the American-funded ultra-Conservative Kohelet Institute). While the general outline of Levin's plans were known in advance, seeing it written out as proposed legislation made its potential impact all the more tangible, and consequently, frightening.

As a result of the compliment of sweeping changes Levin is intent on implementing, many believe the very essence of Israel as a democratic country is now at risk. Before delving into the specifics of Levin’s proposal, some background is needed to understand why this plan is so dangerous. Even before Levin took over the Ministry of Justice, Israel's democracy was rather fragile — particularly for those familiar with the democratic systems in place in countries like the United States. Unlike almost all other Western countries, with the exception of England, Israel does not have a constitution. Israel's parliament operates under a national list system, which means that no one represents their constituents directly. The Israeli parliament and government are essentially one unit. As a result, members of the ruling coalition in parliament cannot vote against the government if they want to maintain a political future. Without independent bases in specific local districts throughout the country, the parliament does not act as a balance to the government — i.e. whatever the government decides, the Knesset will approve.

Israel does have what are known as "Basic Laws," which provide some form of protection for individual rights. However, these laws can currently be amended with just 61 votes — a simple majority in the Knesset. The Supreme Court is the only balance in Israel’s system of governance. Only the Supreme Court has the power to declare laws or administrative actions in violation of Israel's Basic Laws, or to declare those actions to be unreasonable. Over the course of the last 30 years, Israel’s Supreme Court has ruled that laws or parts of laws violated Israel's Basic Laws 29 times.

It is because of the Supreme Court that women are now able to become pilots, and that the ultra-Orthodox have not yet been completely exempt from service in the IDF.

The Supreme Court has also ruled that certain settlements are illegal, not because settlements themselves are illegal, but because certain particular settlements were built on private Palestinian land. Given this context, it is clear that those who wish to weaken Israeli courts have their own interests at heart. The ultra-Orthodox wish to pass laws that would exempt their children from Army service, and limit the rights of women. At the same time, representatives of settlers wish to remove barriers to unlimited settlement growth in the West Bank. Lastly, there are those who want to end Prime Minister Netanyahu’s corruption trial — and they know that a strong court would never allow that to happen.

So what are Levin's actual proposals? They are divided into four parts. The first part states that the Supreme Court cannot invalidate any Basic Law, unless the decision is unanimous. It is important to note that almost any law can become a Basic Law even if passed by a simple majority. Under Levin's proposed terms, even if the Supreme Court invalidates a law, 61 members of the Knesset will be able to then vote to override the decision of the Supreme Court. This means that the government, which always has at least 61 votes, would be able to override absolutely any decision made by the Supreme Court.

The second part of Levin’s plan relates to the selection of judges. Currently, judges are chosen by a committee made up of representatives from the government, representatives of the legal profession, and several justices themselves. This cohort regularly requires compromise by all factions to reach accepted decisions. While this system is not perfect, it is well-regarded. However, Levin’s proposed system, would ensure that the committee is made up overwhelmingly of politicians, allowing them to appoint judges of their choosing without needing to compromise.

The third aspect of Levin’s plan is to eliminate the authority of judges to determine whether a law or administrative action by the government is “unreasonable”. If this facet is implemented, it means the courts will no longer be able to act as a check on the actions of the government, or provide any form of redress for citizens suing the government for its actions.

The final part of Levin's plan declares the recommendations of legal advisors for every ministry — including the Prime Minister's office — no longer be binding. They will maintain a solely advisory role, and even if they state that an action is illegal, as the “duly elected official,” the minister will be allowed to proceed with no regard to the legal recommendation.

GROWING PUBLIC OPPOSITION

Even before the details of the plan were made public, opposition began to grow. A large demonstration took place in Tel Aviv last Saturday night, with most of the participants protesting the proposed judicial reforms. The demonstration joined a separate demonstration advocating for Palestinian rights. Many, including myself, were upset by this co-opted merger, not because we oppose the concept of protesting the occupation, but because we knew it would be used against the judicial reform demonstration

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Early in the week, former Defense Minister Gantz proposed creating a joint committee to develop a widely supported plan for judicial reform. However, his suggestion was rejected, and he was told that those discussions would take place in the Knesset Law committee, led by MK Simcha Rothman. Regrettably, Rothman has shown no interest in compromise. Gantz then publicly warned Netanyahu that his actions “could lead Israel into a Civil War,” and Yair Lapid called on the public to “come out and demonstrate.” A large rally has been planned for this coming Saturday night with tens of thousands expected

The reaction from government members was swift. Otsma Yehudit MK Tzvika Fogel said: "Arrest warrants should be issued for Gantz, Lapid, Ya'alon and Yair Golan. They are the most dangerous people here. What they did is treason to the nation. These four need to be arrested!” Fogel was supported by other member of his party, while his party head, Minister of National Security Itamar Ben-Gvir, said: “We do not arrest opposition leaders in this country.” However, Ben-Gvir called on the police to take stronger action against the demonstrators in Tel Aviv.

On Thursday, lawyers and judges across the country participated in a one-hour work stoppage to protest Levin's proposed “reform."

On Thursday night, Chief Justice Esther Chayut, delivered a speech strongly criticizing Levin’s reform, stating it would damage Israeli democracy by creating unchecked power. Chayut stated that Israel’s 75th year of Independence will be remembered as the year Israel’s democracy suffered a fatal blow. The Chief Justice quoted Zeev Jabotinsky and Menachem Begin extensively. Levin responded in a televised statement, calling Chayut “a supporter of the opposition,” implying that her opinion should be ignored.

These are dangerous times.

In related news, over 100 mayors and heads of local authorities have signed a letter stating that they will refuse to provide municipal funds to finance ultra-Orthodox schools that do not teach core secular subjects. The head of the ultra-Orthodox faction in the Knesset and Finance Committee head, Moshe Gafni, has promised to retaliate in response to this move.

ECONOMY & BUSINESS

On Wednesday night, In attempts to change to the public discussion, Prime Minister Netanyahu and Finance Minister Smotritch held a prime-time news conference to share how they were flighting inflation. The plan they unveiled will significantly decrease the projected increases in electricity, water, and municipal taxes. Based on what was announced, the average Israeli family will save NIS 80 (or about $25 ) a month.

7—Eleven opened the first of a planned 300 stores in Israel. At the flagship store, located at Dizengoff Center in Tel Aviv, the first two days were utterly packed.

HIGH-TECH & FINANCE

Israeli high-tech saw a 42% decline in investments compared to the previous year; ending 2022 with the second highest investment volume since 2015 at $14.95 billion across 663 rounds. Despite this decline, early stages of capital raising (Seed and A-rounds) remained strong throughout the year.

Capital inflow from large deals ($100 million or more) slowed to levels seen in 2018-2019, with 36 such rounds over the year and contributing 39% of the total investment amount; compared to a 54% share in 2021. Despite this, early stage funding activity remained strong throughout most of the year, but the third and fourth quarters saw a decline in investor interest in these companies. 120 exits were completed in 2022, including 101 mergers and acquisitions, totaling $12.7 billion.

Elbit Systems Ltd. announced today that it was awarded a contract in an amount of approximately $70 million to supply rockets to the armed forces of a European country. The contract will be performed over a period of 3 years.

Under the contract, Elbit Systems will supply 122 mm extended-range rockets that are intended to significantly increase the performance and effectiveness of operations by allowing ground forces to concentrate fire at an increased range of up to 40 kilometers. The rocket offers simple autonomous operation in various weather conditions and can be ready to be launched in less than one minute.

Vgarden, Ltd., a foodTech developer and manufacturer of plant-based alternatives located in Gan Shmuel , launches game-changing vegan canned tuna. The 100% plant-derived product has the same appearance, texture, and flavor of the canned kitchen staple. The tuna analog is crafted to satisfy the appetites of the growing pool of sustainability-driven consumers by bringing to the table its creative response to the issue of the overfished and rapidly declining ocean populations of wild tuna

Credit Hagit Goren

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A PIECE OF HISTORY — ARAB RIOTS OF 1929

During the economic crisis of 1926-28, antagonists of the Jewish State saw an opportunity for it to fail. At the sixteenth Zionist Congress, held in Zurich from July 29 to August 10, 1929, the establishment of the Jewish Agency was announced. The Agency, which included non-philanthropists from the United States, was seen as a major source of invigoration for the Yishuv. This event coincided with the rise of power of Mufti Amin el-Hussein, who decided to incite religious violence against Jews by spreading rumors that they were planning to seize the Temple Mount in Jerusalem. The Mufti used placement of a Mechitza at the Wailing Wall as an excuse to take action. On Friday, August 23, violence erupted in Jerusalem, as Arabs indiscriminately attacked Jews throughout the city. Jewish defenders repelled the Arab attacks in Jerusalem, but the violence spread throughout Palestine. In Hebron, where Jews had lived peacefully for thousands of years, 66 Jewish men, women, and children were massacred. In most places, Jewish defenders managed to hold off the numerically superior Arab attackers.

A TASTE OF TEL AVIV— DOK

RESTAURANT REVIEW, by TALI SCHULMAN

This week we go to one of my favorite places to sit in Tel Aviv, Dok. Known for using exclusively seasonal ingredients from Israel, Chef Asaf Dok focuses primarily on Israel’s best produce, fish and seafood. After relocating across the street this past year, you can now find Dok at a little corner oasis on Ibn Gvirol St., across the street from ZOA house (where you can find another Asaf Doktor restaurant — Ha’achim). At Dok you can expect to find a frequently changing menu, consisting of the freshest ingredients they were able to procure that day — which makes it’s hard to recommend a dish to eat there. That being said, I can confidently recommend absolutely any raw fish dish on the menu, and know it will be delicious. Some of the highlights that have repeatedly returned to the menu are their baked kohlrabi, their greens salad (not your standard lettuce salad), and from their dessert menu — the date cake with sesame ice cream. If you see it, definitely do not skip it! 

For more Tel Aviv restaurant recommendations, you can find me on Instagram @talischulman where I save all my food adventures in my highlights!