Tel Aviv Diary January 27, 2023
Protests, Protests, Protests, Deri Fired, Violence in West Bank, History and a Restaurant Review
Protests
Israel has recently become a land of protests, with the largest demonstrations in over a decade taking place last Saturday night. These well-organized protests took place in central Tel Aviv, with considerable crowds filling the streets from the Azrielli Towers to Ibn Gvirol Street. Another smaller protest came together at Habima Theatre. Organizers set up large screens in strategic locations throughout the area of the demonstration to keep participants informed and engaged. Speeches delivered during the protest were well received, though not particularly inspiring.
The demonstration significantly impacted the city, as many major streets were closed, causing difficulties for those trying to enter or leave Tel Aviv. It is uncertain whether another protest of this scale will take place this Saturday night. A high school student strike is planned for one hour this Sunday (29/1). In addition military reservist are planning a three-day hike to Jerusalem to protest the plans.
This past Tuesday, a one-hour strike was held by high-tech workers throughout Israel. About 2,000 people took to the streets in Tel Aviv to protest, blocking Kaplan Boulevard for an hour midday.
This outcry marked the first time the high-tech community has engaged in such demonstrations. The high-tech community is concerned about changes in laws and regulations that could negatively impact their industry. High-tech leaders fear that without an independent judicial system, there would be nothing to prevent the current government, or future governments, from taking actions—such as, implementing retroactive tax increases, or foreign currency controls, which would hurt investors. Furthermore, high-tech leaders also fear that top talent in the industry would leave the country if they feel that their rights and interests are not protected.
Two former Governors of the Bank of Israel, Karnit Flug and Frankel, spoke out against the proposed judicial reforms on Tuesday, citing concerns about their potential negative impact on the economy. Additionally, Professor Chazan of Tel Aviv University, who served on the monetary committee of the Bank of Israel, resigned his position, stating he believed it was more important to fight the government’s proposed judicial reforms than to advise on monetary policy.
That same evening, the current Governor of the Bank of Israel met with Prime Minister Netanyahu and reportedly relayed his concerns about how the proposed judicial reforms would harm Israel's credit rating and its reputation in the global community— according to remarks the Bank Governor heard from several participants at the Davos conference.
Nobel Prize Laureate Prof. Daniel Kahneman called the plan for Judicial Reform, “The end of Israeli democracy.”— Kahneman declared: “I feel like I’m in a place I don’t know. I’m completely shocked. For me, the end of Israeli democracy is no small thing. It’s the end of a dream. I want to believe there is hope, but this is not the Israel I knew, that I grew up in. This is not the Israel I want my children and grandchildren to grow up in,” Kahneman said.
On Wednesday, a letter signed by nearly all of the prominent economists in Israel was released, expressing opposition to the proposed “reforms,” on the grounds that they would significantly harm the economy. These actions and statements put pressure on Prime Minister Netanyahu to address the issue of Judicial reform. In response, Netanyahu held a hastily arranged Press Conference, with Finance Minister Smotritch and Economic Minister Nir Barkat.
At the Press Conference, Netanyahu claimed the Israeli economy is strong and that judicial reform will actually strengthen it. However, Netanyahu did not provide any concrete explanations or evidence to support this claim. Instead, he cited issues such as the length of time it takes for court cases to be decided—which while being a real problem, is not directly related to the proposed reforms.
On Thursday, Eynat Guez, CEO of Israeli unicorn Papaya Global, announced that the company would be moving its investments out of Israel, due to Prime Minister Netanyahu's decision to proceed with judicial reforms despite broad-based criticism. Some investors have opposed Guez’s move, however, its impact on the company is expected to be limited. This announcement follows a growing trend of criticism against the government from various sectors of the Israeli economy. Later in the day, venture capitalist Tal Bernach announced that his two funds, Disrupt and Disrupt AI, would also move $250 million out of the country.
I do not think these initial actions will make much, if any, difference. However, as I wrote to some Israeli friends, despite my pessimism, we have no other choice; for as the song states: “We have no other country.”
Politics
On Sunday, Prime Minister Netanyahu followed a Supreme Court ruling and removed Minister Aryeh Deri from the ministerial positions in his government. In a statement, Netanyahu expressed regret over the court’s decision, asserting he was “forced, with a heavy heart" to remove Deri. Later that evening, leaders of the coalition government, along with Knesset Speaker Ohana, attended a meeting of Deri's Shas Party, where they criticized the legitimacy of the Supreme Court ruling. Once again, Deri supporters made the issue one of prejudice against Sephardim.
On Monday, Sports and Culture Minister Miki Zohar announced that the Cultural Shabbat program, in which museums and other cultural attractions remain open and free to the public on the Jewish Sabbath, would come to an end. Zohar cited concerns of discrimination against the religious community. However, Prime Minister Netanyahu quickly overruled Zohar's decision. The power to fund the free Shabbat programming was subsequently transferred to the newly formed Moreshet Ministry, led by a member of the right-wing Otzma Yehudit party. As a result, the Cultural Shabbat program will be canceled going forward. MK Moshe Gafni, chairman of the powerful Finance Committee, introduced legislation that would require nature reserves with bodies of water to designate 15% of their operating hours for separate visits by men and women.
An interesting development in Ultra Orthodox World, a new party was founded called “Smolanim Mehadrin” loosely translated leftist who are Ultra Observant. At their first meeting over 600 people showed up. What impact they might have is hard to say but its an interesting development.
Defense
On Thursday morning, Israeli Defense Forces (IDF) and police troops entered the refugee camp in Jenin, in search of members of the Islamic Jihad suspected of planning an attack. During the operation, two members of the group were killed and another was arrested. However, a total of ten Palestinians, including the two targeted members of the Islamic Jihad, were killed in the ensuing gunfight.
In response, the Palestinian Authority announced that it would end all security cooperation with Israel. This threat has been made in the past, but this year alone, 30 Palestinians have been killed by Israeli forces. Six retaliatory missiles were fired from Gaza towards Ashkelon, but were intercepted by the Iron Dome missile defense system. The Israeli Air Force responded by attacking a Hamas rocket facility in Gaza
The violence occurred as Israel and the US were conducting their largest joint military exercise, Juniper Oak 23.2, which included thousands of Israeli and American troops working and flying together. The cooperative exercise is seen as a clear message to Iran.
Lieutenant Colonel Karin Bibi was elevated to the rank of full colonel. Colonel Bibi was assigned command of the Air Force division responsible for maintaining Israel’s UAV fleet at the cutting edge of technology, as well as maintaining visual intelligence. She is the first woman to hold this position.
INTERNATIONAL HOLOCAUST REMEMBRANCE DAY
President Herzog met with the Head of the European Union on Thursday, ahead of his address to the EU Council today, marking International Holocaust Remembrance Day.
BUSINESS & FINANCE
Mckinsley has acquired Iguazio, which specialized a real world applications of AI, through its subsidiary QuantumBlack.
Dell purchased Israeli start-up Cloudify for $100 million. Cloudify had received a total of $8 million in investments, to date.
Israeli startup PayEm raised $20 million in what is called a “Safe Round” (when stock is not distributed, but rather is calculated when there is an additional round). PayEm specializes in the purchasing process for companies.
Elbit Systems Ltd. announced the signature of a five year in-service support contract with the NATO Support and Procurement Agency (NSPA) for the Direct Infrared Counter Measures (“DIRCM”) systems supplied to the Multinational Multi-Role Tanker Transport (MRTT) fleet. The contract includes the establishment of a service center, located at NSPA, to provide support and logistics to the system. Equipped to provide comprehensive support to the NATO MRTT fleet equipped with the DIRCM system, the NSPA dedicated facility, in Luxembourg, will be an essential resource for the fleet, providing the necessary expertise, equipment, and maintenance. The center will provide repair, spare parts and maintenance services to ensure that all systems operate at optimal levels.
A PIECE OF HISTORY— THE ARAB REVOLT
The Arab Revolt in Palestine was a response to the increasing number of Jewish refugees entering the region. Arabs were persuaded they needed to act to prevent the Jews from becoming a majority in the land. The first phase of the revolt began with a general strike in April 1936 and was characterized by attacks on Jewish and British targets. The strike led to the Yishuv's leaders recognizing the need for economic independence, which led to the opening of the Tel Aviv port. The British initially used minimal force to combat the revolt. The second phase began in the summer of 1937, when a British district commissioner was murdered. In response, the British actively suppressed the revolt, including expelling the Mufti, cooperating with the Haganah, and developing a large Jewish police force. The revolt was ultimately quashed due to the tactics of Orde Wingate and his night squads, which included preemptive raids on Arab villages
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MOVIE REVIEW
"God's Neighbors” is one of Netflix's new Israeli films. While the acting is good, the film falls short in terms of character development and exploration of the theme of the interaction between religious and non-religious individuals, which is a central debate in Israel today. The story follows a group of young, newly religious men who attempt to enforce their beliefs on others, with their plan going awry when one of them falls for a non-religious neighbor. Overall, it is not a particularly engaging or thought-provoking film.
A TASTE OF TEL-AVIV— PIZZA85
RESTAURANT REVIEW, by Tali Schulman
Found just in the outskirts of Shuk Hacarmel off of Nachalat Binyamin, my favorite part of the city, Pizza85 serves some of the best small-medium sized pizzas in the city. If you’re looking for a central, yet low-key dinner and some drinks with friends, this is the place to go. Pizza85’s menu is simple, yet offers everything you need from the classics to more interesting topping selections, all made with quality ingredients — there’s something for everyone (assuming you’re into thin crust and delicious dough like myself). Personally, I’m a fan of their classic margarita, but it’s worth trying the rest of the menu as well to decide for yourself!
For more Tel Aviv restaurant recommendations, you can find me on Instagram @talischulman where I save all my food adventures in my highlights!