Tel Aviv Diary July 28, 2023
Coalition Wins the Battle; But At What Cost? How Did We Get Here? Can Israel's Self Imposed Wounds Be Repaired?
REASONABLENESS CLAUSE REMOVED: HOW WE GOT HERE
It's hard to convey the feelings of disappointment, despair, and anger of at least 50% of the population of Israel this week after the Coalition passed the law to severely limit the courts’ ability to review decisions of the government, otherwise known as elimination of the “reasonableness” clause.
For those old enough to remember, events of the past week brought back agonizing echoes of the assassination of Prime Minister Rabin. The reverberation to that heart-wrenching time is very real, and a direct line can be drawn from that moment to the events of this week. As we watched events unfold it became crystal clear that the heinous murderer and his zealous far-right religious supporters changed history and are now in charge of the country.
Since Rabin’s assassination — with the exception of the brief Premiership of Ehud Barak and the short-lived government of change under Naftali Bennett — all of Israel’s governments have been right-wing, with Prime Minister Netanyahu leading most of them (16 of the 28 years). While Netanyahu has always been true to his Likud roots, he has also been a pragmatic leader. Though throughout the years, many have opposed him and his policies, only once did Israelis take to the streets — during the social protest movement of 2011. Netanyahu successfully navigated that movement, whose goals were too amorphous to achieve very much— their call was for “Social Justice”.
However, this year, after an election victory won primarily due to mistakes of the left-wing parties, Netanyahu returned to power under different circumstances than any of his previous terms. For the first time there were no centrists in his coalition to balance some of the more right-wing members. Moreover, the Likud itself has undergone a change. The old guard of Likudniks, such as Benny Begin, Dan Meridor, and Gideon Saar, who were committed to liberal governing principles, are no longer part of the party. They have largely replaced by religious members whose views are by and large to the right of Netanyahu.
Of course, the biggest change was not in the Likud, but in the power that Netanyahu gave to the far-right elements of his government. By appointing Bezalel Smotrich Finance Minister and Co-Defense Minister, as well as making Itamar Ben-Gvir Minister for National Security, Netanyahu granted positions of real power to a suspected terrorist and a convicted terrorist. Some were comforted by Netanyahu's initial words, claiming that he was in charge, and he had control over the government.
However, all of that changed on January 5th, when Justice Minister Yariv Levin unveiled a plan to completely emasculate the courts and the legal system by making it impossible for them to question any action by the government. At that point, about half the country understood that this new coalition was not just another Netanyahu government, and since then, the coalition’s ruthlessly steady actions sparked the largest and most sustained protest movement in Israel's history.
In April, it appeared as if the demonstrations had won, as the government agreed to halt the process of Judicial overhaul, and only pass laws that earned broad consensus. However, on Monday the coalition unilaterally passed the most extreme version of the law to eliminate the use of the reasonableness consideration by the courts.
THE VOTE NEARS …
Last Saturday night, over 140,000 people turned out in Tel Aviv to stand in support of the 80,000 who descended upon Jerusalem, at the end of a 4 day march to protest the coalition’s proposed changes to the Judiciary
. The feeling of dissent was even stronger at a large demonstration that many of us attended in Jerusalem on Sunday evening. Trains were packed with hopeful individuals, harboring the misguided belief that our voices would be heard. It was an odd night because, as we ascended to Jerusalem, thousands of mostly religious people were headed in the opposite direction, to Tel Aviv, to support the proposed changes to the judiciary, most without fully understanding the implications.
In Jerusalem on Sunday night, former President Ruby Rivlin took the unprecedented step of addressing the assembled crowd of 100,000. His speech was heartfelt; as a lifelong Likud member and leader, he decried the attempt to weaken the courts, which he reaffirmed was the exact opposite of the longstanding Likud position. Rivlin also criticized the attempt to frame the disparate need for immediate Judicial reform a controversy between Sephardim and Ashkenazim, drawing upon his youth in Jerusalem where all the communities lived together harmoniously. Finally, Rivlin called out Netanyahu personally, as the only one who could stop the passage of the law. The mood in the crowd was a mixture of fear and hope — fear that the law would be passed the next day, and hope that Netanyahu might agree to a delay the legislation or agree to a compromise at the last minute. Hope was strengthened by the fact that the number of pilots and other critical military reservists who threatened to stop volunteering continued to rise to the point where military readiness of the IDF would be in jeopardy
.
The following morning, on Monday, there was still hope for a solution — likely not a compromise all would like, but one that would avoid the possibility of the worst outcome. There were reports Yair Lapid had made a major concession, stating that he could support a watered-down narrowing of the “reasonability clause” bill, in return for a one-year halt of any additional legislation on Judicial “reform.” It was reported that Netanyahu wanted to accept the compromise; however, members of his coalition threatened to bring down the government if he did — so he turned down the proposal.
Netanyahu made it clear that his own political survival was more important than the good of the state— he actually said as much in his own words the week before when he stated that “the country could do without a few squadrons of pilots, but could not do without a government.” By “government,” he really meant that the country could not exist without him.
Even in the final minutes of voting, there was still some limited hope for a last-minute change. TV screens showed Defense Minister Galant in a last-ditch effort to weaken the new law. The image of Galant on one side of Netanyahu and Levin on the other, excited and terrified viewers as Galant earnestly tried to convince Netanyahu to compromise; while Levin sat smugly on the other side, confident that nothing would stop Netanyahu. However, on Monday afternoon, on Monday afternoon the wait was over, and the divisive law passed, 64 to 0 (The Opposition decided to boycott the final vote)
.
In hindsight, it is now indisputable that the event which began on a traumatic night in November 1995 — when a lone gunman emerged from a community that believes the land of Israel is more important than the nation of Israel and tagged anyone who disagreed with their worldview as a traitor — changed the course of Israel’s history. However this week, it was unequivocally demonstrated that some of the most extreme elements of that militant, messianic, racist, zealot community, once shunned by the Israeli mainstream are not only no longer shunned, but are now in control of the government.
THE AFTERMATH
By Tuesday morning, some of the effects of the passage of the elimination of the reasonability clause were already visible to all. Most of the Air Force personnel who had threatened to stop volunteer service if any of the Judicial overhaul laws passed called their commanders to declare they would indeed no longer serve. As a result, the ability of the IDF to fight a war has been significantly impaired, to the extent that the army officially stated as such — and the army's Chief of Staff, Hertzi Halevi, made a public statement warning of the alarming impact of the reservists’ decision and pleading with them to continue to serve.
Following the new law’s passage, the Moody's investment agency issued a rare special report warning of the potential dangers of investing in Israel. The report laid out all of the potential economic impacts of weakening the courts by eliminating the reasonableness clause. Moody's Chairman was said to be livid with Netanyahu, who had directly promised him there would be no one-sided legislation. He, like many others, felt purposefully deceived. On Thursday night, S&P issued their own report warning against investment in Israel at the moment. Both Netanyahu and Smotritch stated that Moody’s actions were emotional, and was not based on facts. The Israeli economy is strong the pair claimed.
One of the most disturbing data points this week was the response to a Channel 13 survey, in which 28% of the respondents said that they were considering leaving the country because of the current coalition’s actions. This dovetails with a report that ranked Tel Aviv number one in the world for the number of start-ups relocating out of the city (and country). I am not sure what is going to happen to all of the large office buildings that are still being built. This also ties to another alarming statistic—a new WhatsApp group titled “Doctors Seeking to Relocate,” which gained 2,000 members within hours.
On Thursday, Netanyahu gave an interview to ABC News in which he described the new law on judicial reform “as a minor matter”. During the interview with George Stephanopoulos, Netanyahu mentioned that he had been invited to the White House, possibly in September. However, within minutes, the White House issued a statement clarifying that no location or time for a meeting had been set. It's evident that President Biden has not included Netanyahu on his Christmas list, especially after Netanyahu ignored the President’s repeated pleas not to pass any reforms that lacked broad support.
Netanyahu gave additional interviews to the American media on Thursday, including one with Wolf Blitzer on CNN. In that interview, Netanyahu refused to promise he would follow a Supreme Court decision if it were to overturn law that legislates removal of the reasonability clause. Interestingly, Netanyahu continues to avoid interviews with the mainstream Israeli media, preferring instead to be questioned by American media, which used to fawn over him. However, this time, American interviewers asked more pointed and uncomfortable questions. Regrettably, they seem incapable of confronting him when his answers are sometimes outright lies
.
SO, WHAT NOW?
The question is, where do we go from here? The protest movement plans to keep its momentum going. On Monday night, after the vote, tens of thousands spontaneously took to the streets. Unfortunately, those demonstrations took a violent turn when the police, in many cases, used excessive force to contain protesters. Last night, there were additional demonstrations in Tel Aviv, and on Saturday night, nationwide demonstrations will continue — but can this constant protest be sustained, physically, psychologically?
If you would like to donate to the protest movement, write me at marc@multied.com, and I will send you information on how to do so— It's important.
In the meantime, there are now a few voices in what's left of the pragmatic security-minded Likud, led by Galant and former Shin Bet head Dichter, who are calling on Netanyahu to take back the reins from Levin and put an end to Levin's obsession with neutering the Judiciary that is weakening the country. (One commentator recently stated that Levin has caused more damage to Israel than any one person in history.) Will these Likud prospective dissenters actually have the guts to act? If recent history is a guide, they will not … but we can hope.
MILITARY SERVICE
The day after the passage of the law, the utra-Orthodox UTJ (United Torah Judaism) party introduced their own legislation to establish Torah study a core value of the state. Their new law suggests that those who dedicate themselves to studying Torah for an extended period should be regarded as significantly serving the State of Israel, equating their contribution to that of combat soldiers. The Likud immediately disavowed the introduction of the bill, stating that it would never pass into law. However, passage of this law was part of the coalition agreement signed before the establishment of the government.
Currently, 68.8% of men are required by law to do army service. Among those who do not serve, 16% are ultra-Orthodox and the rest have been exempt for health, or other reasons. As for women, 55% serve, and 36.3% do not serve, citing religious exemptions. (These numbers exclude Arab Israelis, but include Druze.)
Surprisingly, (as this is never highlighted by the government or the media), areas of the country with the highest socio-economic rating have the highest rates of draft, reaching 90% for both men and women. These numbers also translate to higher numbers of combat soldiers, with 59% of combat soldiers coming from the highest socio-economic grouping, despite comprising only 40% of the population.
Approximately 1,200 ultra-Orthodox youth are drafted in each of the two draft cycles, but this number includes a significant portion of formerly ultra-Orthodox individuals.
NETANYAHU’S HEALTH
On Saturday night, Prime Minister Netanyahu underwent emergency surgery to implant a specialized pacemaker in his heart. It is now clear that both Netanyahu's office and, more surprisingly, the Tel Hashomer Hospital lied when they said the week before that he was suffering from dehydration and that all his tests were normal. Why lie? Just don't say anything.ֿ
CONSTITUTIONAL CRISIS ON THE HORIZON
September is going to be a busy and dramatic period for the Supreme Court. It will address whether the new law on reasonableness is legal. Secondly, it will take up a case to overturn the law that was passed, prohibiting the Attorney General from temporarily removing the Prime Minister for acting illegally. Lastly, it has taken a case that seeks to remove Netanyahu from office for not following his Conflict of Interest Agreement, which was a prerequisite for allowing Netanyahu to run despite being on trial for corruption.
MILITARY MATTERS
This week there were several attacks in the West Bank in which the perpetrators were killed. On Thursday, Palestinians fired a homemade rocket from the area of Jenin towards Israel. The rocket only flew a short distance, but this was their third attempt.
HOMOPHOBIA IN ACTION
Non-traditional families face significant challenges in adopting in Israel. They have filed a petition in Israeli courts to change that. The response from the government, in the name of the Welfare Minister Ya'akov Margi of Shas, is that he opposes the Child Adoption Law that would afford same-sex couples adoption rights, stating that “it is against a child's best interests”.
BUSINESS
Indian Oil, an Indian energy and petrochemical company, is increasing its stake in Phinergy, which develops metal-air battery technology. Indian Oil will acquire Phinergy shares at a value of $10 million, 20% lower than their market price. Additionally, Indian Oil, valued at $17 billion, will buy shares from existing shareholders for $2.25 million at the same price. This follows a previous investment made in January 2020, which increased Indian Oil's stake in Phinergy to 5.4%.
Cyclops, a cybersecurity startup, has recently emerged with a significant funding success. Led by Merlin Ventures, the company raised an impressive $6.4 million in a seed funding round. Notable participants in the funding round include global cybersecurity giant Crowdstrike, Insight Partners, Tal Ventures, toDay Ventures, as well as angel investors from Island, Torq, and other companies. This substantial financial backing validates Cyclops' approach to addressing the challenges faced by organizations in managing the vast amount of cybersecurity data and technologies they encounter. With this funding, Cyclops is poised to revolutionize the industry and provide a user-friendly solution to the overwhelming world of cyber defense.
Cyclops' innovative platform utilizes the Cyber Security Mesh Application (CSMA) architecture and Generative AI (GenAI) to help organizations identify threats in real-time, understand their urgency, and respond effectively. The impressive funding will empower the company to further develop and refine its solutions, enhance their capabilities, and expand their team. This significant investment indicates strong investor confidence in Cyclops' vision and potential to make a significant impact in the cybersecurity sector, providing a much-needed solution for organizations grappling with complex cybersecurity challenges.
A TASTE OF TEL AVIV — Christoff Wine Salon
RESTAURANT REVIEW, by Tali Schulman
As we reenter the wine bar scene after a brief hiatus, our destination is the remarkable Christoff Wine Salon, nestled on the outskirts of Shuk Levinsky. Renowned for its diverse and exceptional wine selection, Christoff boasts incredible sommeliers who promise to take us on an unforgettable culinary journey. The interior, a tasteful blend of modern and traditional elements, exudes a cozy ambiance, perfect for intimate gatherings. The thoughtfully crafted menu offers a delightful fusion of Mediterranean and international cuisines, harmoniously complementing the exquisite wines. In a city teeming with new wine bars, Christoff Wine Salon stands out as an absolute must-visit for any wine enthusiast
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For more Tel Aviv restaurant recommendations, you can find me on Instagram @talischulman where I save all my food adventures in my highlights!
Marc, Shabbat shalom.