Tel Aviv Diary March 10,2023

Terror in Tel Aviv, Demonstrations, Herzog Speaks,Netanyahu Travels, Business and Restaurant Review

TERROR

Last night, Tel Aviv experienced another terror attack, when a 23-year-old Palestinian opened fire at patrons in a cafe on Dizengoff Street. Three people were wounded, two remain currently in critical condition at Icholov Hospital. This particular corner is familiar to me, as I was there just the night before. When this most recent incident occurred, I was a few blocks away, watching as dozens of police cars and ambulances raced to the scene. While this is not the first time Tel Aviv experienced such an attack in recent years, it is nonetheless particularly unsettling to have an incident happen in a place you frequent. The scope of this attack pales in comparison to previous bombings that occurred, but the impact of the terror is no less significant.

Just two hours later, a package containing a bomb was discovered on a bus in Beitar Illit. Fortunately, no one was injured when it detonated. Overnight, residents of the town were told to remain in their homes. In the morning the all clear signal was given.

POLICE & INCREASED DEMONSTRATIONS

A few minutes before the two events cited above, the Minister of National Security and the Police Commissioner made an unprecedented decision to dismiss the Commander of the Tel Aviv District in the midst of ongoing police action. This determination was prompted by Ben Gvir’s dissatisfaction, following complaints the Minister felt the police had not been assertive enough in their handling of the demonstrations that took place throughout the country on Thursday. Tel Aviv protesters managed to block the Ayalon highway for a significant period of time, causing disruptions for up to two hours.

Demonstrators also obstructed the entrance to Ben Gurion Airport for over an hour. This morning, former high-ranking Police officers called on the current Police Commissioner to resign. 

I was in the audience at a conference this morning when former Defense Minister Benny Gantz called on the Prime Minister to fire Ben-Gvir, who he called “totally incompetent.” Ben-Gvir responded to the letter from the former high-ranking Police officers by calling them “a group of failed has-beens”. Also this morning, the Attorney General put a temporary halt on the Tel Aviv District Commander’s firing

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Last weekend, a massive demonstration was held across the country, with over 400,000 people taking to the streets. The turnout in Tel Aviv alone exceeded 150,000, and in almost every city, the number of participants nearly doubled compared to previous weekends.

INTERNATIONAL WOMEN’S DAY

On Wednesday, in honor of International Women's Day, thousands of women throughout the country held hands, creating a huge human chain, as a protest against gender inequality and violence against women. The demonstration was tied directly to the effect that the proposed changes in Israel’s judicial system on women.

IDF RESERVISTS PROTEST

In addition to the demonstrations in the streets, an increasing number of reserve soldiers from elite units, including groups of Air Force pilots, have signed letters stating they will not continue to serve if Israel becomes a dictatorship. A letter from a group of F-15 pilots has a strong impact on the country, as without reservists, the Air Force will be significantly impacted. However, in response, some members of the Likud party, such as Communication Minister Shlomo Karhi, pushed back and told the protesting pilots “they were not needed, and should go to hell.”

Karhi's comment was met with widespread condemnation, even among supporters of the government. Critics pointed out that only 26 out of the 64 members of the current coalition served in the army— and some of them for very short periods of time. In contrast, 33 out of the 56 opposition Members of Knesset (MKs) served. It is important to note that the opposition includes several Arab legislators, who are exempt from army service. The audacity of a government filled with individuals who either never served, or only served minimally, attacking those who in many cases served for decades is truly remarkable.

DEMONSTRATIONS, WHAT NOW?

After attending yesterday's demonstration, I came away with several thoughts. First, what we are witnessing is not the traditional grumblings of the Tel-Aviv left. Today’s demonstrators are not the usual Meretz or Avodah voters. The crowd is overwhelmingly young, composed of people who were never previously motivated by politics or social protest. It is clear that Netanyahu is regretting the moment he decided to proceed full steam ahead with the judicial overhaul, as he has awakened an entire generation — in ways that would have been unthinkable just a few months ago.

The judicial reforms have aroused a sense of overall discontent, with a feeling that we are not going to be used or oppressed any longer by zealots who do not respect individual rights, or share equally in the responsibilities of the collective. The juxtaposition of the judicial coup and the pogrom in Huwara last week, combined with Finance Minister Smotritch's statement that he would be in favor of “wiping the village off the map,” have taken some demonstrators to a different, significantly more angry place. I listened to one very irate protester arguing with a modern orthodox man, stating that although he had grown up in a nationalist home where he was taught never to criticize the ultra-Orthodox or the settlers, he can not take it anymore.

I also spoke to a Likud supporter who happened to be passing by, and shared that despite having voted for Bibi in the past, he would not do so again. He couldn't believe Netanyahu is ignoring everything that is happening now and flew off to Italy for the weekend.

NETANYAHU IN ITALY

Netanyahu's recent trip to Italy was a series of mini-dramas, even before he departed on Thursday. The Prime Minister insisted on flying on El Al's largest plane, the 777, for the 3-hour flight to Rome. However, only a small percentage of El Al pilots are current on the 777, and since it was not a regularly scheduled flight, pilots had to volunteer for the trip. Unfortunately for Netanyahu, none of the qualified pilots were willing to fly him. In the end, Netanyahu and his wife Sara were forced to fly on the smaller (but still adequate) El Al 737, which more pilots are currently certified to operate.

The trip itself has come under scrutiny amidst the current turmoil, as no one can see a legitimate governmental reason for Netanyahu to go to Italy for the entire weekend to conduct a mere 45-minute meeting with the Italian Prime Minister. This begs the question of who in the government can question Netanyahu.

PRESIDENTIAL ADDRESS

On Thursday night, President Herzog addressed the nation, stating that the current judicial reform legislation constitutes “the source of nightmares.” Herzog explained that while agreements had been reached on many different matters, not all has been agreed upon. He demanded the current legislation be removed, and that the government start over based on many of the agreements already reached— in order to develop legislation that will strengthen Israeli democracy, instead of destroying it. The opposition responded positively to the President's words, but Rothman the head of Judicial Committee responded this morning by announcing that Sunday morning the Committee would continue its deliberations to pass the current law.

In addition to the judicial overhaul, the government committee on legislation has approved a bill that would legalize gifts given to the Prime Minister and others to finance their legal or other related matters. This bill has been advanced, despite stringent opposition from the State’s Attorney General. In the past, the Attorney General's opposition would have been enough to stop the government’s actions, but it seems that this government is not deterred by such concerns regarding corruption.

DEFENSE 

US Secretary of Defense Lloyd Austin visited Israel on Thursday. Due to the protests, he was unable to get to Defense Headquarter in Tel Aviv. Meetings with Austin were held at the headquarters of Israel Aerospace Industries instead. Austin met with Prime Minister Netanyahu before the Prime Minister left for Italy, and then he met with Defense Minister Galant. The main topic of the meeting was Iran. In a readout of the meeting by the Department of Defense it was stated that “Secretary Austin expressed concern over the deteriorating security situation in the West Bank. He urged that immediate action be taken to implement commitments made during the high level meeting in Aqaba, Jordan on February 26, including the Israeli Defense Forces.

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On Monday, it was alleged that Israel attacked the Aleppo Airport in Syria to intercept a shipment of arms destined for Hezbollah. On Tuesday, Israeli forces entered Jenin to capture the terrorist responsible for the attack last week in Huwara in which two Israelis were killed. In the ensuing gun battle, the terrorist was killed, as were five other people. On Thursday, three more Palestinians were killed in Jenin, during another action to capture wanted terrorists.

ECONOMIC IMPACT OF PROPOSED JUDICIAL REFORM

Meanwhile, the economic impact of the judicial reform has been becoming more clear. The rating agency, Moody’s, issued special report warning of the economic impact on Israel if the Legislation is passed. As a result, Riskfield, the software unicorn announced it plans to remove its cash from Israel and transfer all its funds abroad. Riskfield’s CEO wrote the following:

Team,

Given the quick pace in which Israel is changing, I wanted to articulate my position in writing, and share the actions our company has taken.

The laws being passed can lead to the dismantling of our independent judicial system. In high likelihood this will lead to a meaningful and prolonged economic downturn in Israel. More importantly, this will result in Israel changing from a democracy with liberal values, into a more authoritarian state. I believe that only bad outcomes will come from this “reform”. In the context of everything, with the long-term success of Riskified in mind, we have taken the following actions: 

1) We are moving essentially all of our $500M in cash and equivalents out of Israel. Our concern is that as the financial situation continues to deteriorate, and in order to maintain financial stability, the government will limit transfers and withdrawals of large amounts. 

2) Expansion of hiring for our R&D site in Lisbon. We have limited relocation packages available, but can also support individuals who are interested in making the move on their own. Please contact HR if interested. 

3) Participation in protests is encouraged, and does not count against vacation days. This might be a marathon and not a sprint, so please discuss with your manager how to minimize any impact on our deliverables.

I will update the team with any meaningful developments. 

— Eido

BUSINESS

Despite the economic headwinds towards the end of the year, 2022 was a good year for start-ups in Israel. They raised a total of 14.95 billion in 663 rounds. This was down 42% from the record year: 2021.  This year is expected to be significantly lower.

Assured Allies raised $42.5 million. The investors are Harel Insurance and Fin TLV Ventures.  The company works with insurance companies to analyze their customers as they get older and recommend tests and treatments to keep them healthier longer. Assured Allies has raised a total of $65 million since it was founded in 2018.

THAT’S ENTERTAINMENT— “Noodle” 

Movie Review — Available on Netflix

"Noodle," a 2007 Israeli film, tells an interesting and heartwarming story of a young boy who is left behind in Israel, after his mother, an illegal worker, is caught and deported back to China without being able to reach her son. The boy is accidentally left in the care of the house that his mother was cleaning at the time. The stewardess, whose house the boy was left in, takes control of the situation and becomes attached to the boy. She works to reunite him with his mother in China, but a complicating factor is that the stewardess is a war widow, and her sister is going through a divorce.

Although the production values of the film leave something to be desired, I found it to be a poignant and enjoyable film. The storyline is emotionally engaging, and the performances of the cast are compelling. The film effectively portrays the difficulties and complexities of human connections that can be formed across cultures and languages. Overall, I recommend "Noodle" as a thoughtful and touching film.

A TASTE OF TEL AVIV— SANTA KATARINA

RESTAURANT REVIEW, by Tali Schulman

Tucked in the back corner of the parking lot of Har Sinai Street, Santa Katarina has been a classic on Tel Aviv scene for a number of years. Offering a Mediterranean menu of classics with their own twist, Santa Katarina has something for everyone; between the vegetables, fish, pizza, and pasta this is a great place to group with a variety of eating styles. While I enjoy their food menu, my favorite dish is on the dessert menu, their basbousa (semolina cake). Personally, I think it’s one of the best in the city! Next time the wait at Port Said is way too long, check this place out just around the corner. 

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