Tel Aviv Diary March 17, 2023
Protest Grow, Judicial Coup Advances, Defense, Ukraine, Business,History and a Restaurant Review
PROTESTS CONTINUE
The tenth week of protests marked a significant milestone, as the largest sustained demonstration in Israel's history. Over 200,000 individuals gathered in Tel Aviv, with an estimated total of nearly 500,000 participants across the country. Each week, the recurring question remains whether or not people will continue to show up — and yet, the crowds have grown consistently larger. As the government moves closer to passing legislation that would cripple the independence of the judiciary, anger and determination within the ranks of the opposition only intensifies.
Thursday witnessed another day of widespread protests and disruptions across the nation. Demonstrators obstructed roads in Tel Aviv and various other regions, causing significant disturbances. Overseeing the police response from the central command post was Minister of National Security Ben-Gvir — an action deemed illegal by the State’s Attorney General, who reiterated that the minister is not allowed to direct individual police actions. However, this prohibition was thoroughly disregarded by Ben-Gvir. Protests and road closures persisted into the night, with the main Ayalon Highway being blocked by demonstrators on three separate occasions.
PRESIDENTIAL COMPROMISE ON JUDICIAL REFORM
On Wednesday night, President Herzog addressed the nation, for the third time since the crisis began, urging for an agreement to be reached. This time, however, he presented his own proposal, dubbed "The People's Plan," which he had been developing over the past month. Throughout the day, there were rumors Netanyahu might accept the plan, acknowledging the damage caused by the government's current initiatives, but his more extreme partners seemed unwilling. The truth of these claims remains uncertain.
Herzog's plan offers a compromise that would weaken the courts to a certain extent. While the compromise would make it more challenging for the court to review a law, the plan still maintains a mechanism for doing so. It bars the court from overturning a Basic Law, but requires such a law to be passed by 80 votes in the Knesset. The President’s plan also enshrines the Declaration of Independence as a fundamental framework, explicitly providing protections for equality, freedom of speech, and the right to strike, thereby establishing essential elements of a Constitution. Following a series of meetings, the coalition rejected Herzog's proposal. “The People's Plan” now serves as a rallying point for the protest movement, providing a clear alternative to the government's original, exceptionally controversial proposal.
Numerous prominent figures, including the head of the Histadrut (Israel’s Labor Union) and the head of the Manufacturers Association, expressed support for President Herzog's proposal. Despite this, the Likud party has escalated its rhetoric against Herzog. Likud Minister Miri Regev asserted the President's plan seemed to have been dictated by the Supreme Court's President, calling it “an insult to the public's intelligence” and accusing the President of “standing against the people and their sovereign leadership.”
On Thursday evening, leaders from the major opposition parties, who were part of the previous government, held a joint press conference and collectively endorsed the President's plan. Although they acknowledged that it was not their ideal solution, they expressed their willingness to accept it for the sake of the country's well-being.
A DISHEARTENING DISCOURSE
I had a disconcerting conversation with a government coalition supporter this week during a chance encounter in Tel Aviv, near the Carmel Market. He was rejoicing to a small restaurant owner about how Israelis had moved money out of the country, only to lose it in the collapse of Silicon Valley Bank. I explained to him that the US government had just announced it would reimburse all depositors, so Israeli companies will not lose any money.
However, this sparked a broader discussion, during which the man grew increasingly agitated as he argued for the necessity of curbing the courts' power. His main grievance was that Sephardim, like himself, had always been discriminated against, and it was their time to seize power. He confidently claimed he was denied entry into the IDF pilot's training course because of his Sephardic background—a notion I knew to be false based on personal knowledge. I later shared this story with someone at Thursday's demonstration, who confirmed that he was a pilot in the Air Force for 20 years, and was one of the officers who decided if someone was unfit to finish flight school, and this man’s assertion was total nonsense.
The man continued to criticize the courts, alleging how, after supposed changes brought about by Supreme Court Chief Justice Aharon Barak, Israel would never be able to execute a rescue mission like the one in Entebbe, as the courts would block it. While much of what he said was disconnected from reality, his genuine anger was evident. It was difficult to understand his fury and sense of institutionalized suppression, given that he was a successful building contractor and his children had all become doctors. When discussing the potential consequences of the proposed judicial overhaul, the man admitted that there would be nothing able to stop the Knesset from passing any law — e.g. imprisoning anyone who would not wear a yarmulke. However, he believed Netanyahu would never allow something like that to happen. This echoes Finance Minister Smotrich's statement, when asked who would protect human rights if their sweeping judicial changes were enacted, he replied, "I will.”
In the meantime, the tidal wave of legislative actions continues. This week, the law allowing the Knesset to override a High Court decision with a simple majority passed its first reading. Additionally, the law requiring 12 out of 15 judges to strike down a regular law also passed its initial reading. Furthermore, the “Deri-2” legislation, which prevents the court from reviewing ministerial appointments—on any grounds—was approved. This is the coalition’s attempt to overturn the court’s decision to disqualify Arye Deri from serving as a minister. Finally, the law prohibiting the temporary removal of a Prime Minister (i.e., Netanyahu) from office, unless he is physically or mentally incapable of working, (as opposed to breaking the law), cleared its first reading. Several other proposed laws currently introduced in the Knesset include one that ensures the Charedim are represented on all boards at the same percentage as they represent in the population — and for the next ten years, that number should be doubled to make up for the past.
Ben-Gvir has managed to remain in the headlines beyond the protests through various actions he undertook this week. First, he announced the cancellation of a significant program of the previous government aimed at reducing violence in Arab-Israeli communities, claiming it was run by “a left-wing organization,”— the Joint Distribution Committee.
In addition, Ben-Gvir also halted legislation that would require men accused of assaulting their wives or girlfriends to wear an ankle monitor. His wife, who has been frequently invited to television studios as a spokesperson (for reasons that remain unclear), defended her husband’s decision by asserting that women sometimes lie about being attacked. On Thursday night, Ben-Gvir called for the dismissal of the State’s Attorney General, who has repeatedly declared his actions to be illegal.
FOREIGN AFFAIRS
Netanyahu made a brief one-day visit to Germany on Thursday; a trip which was initially planned to span two days. He met with German Chancellor Olaf Scholz and the German President, for discussions primarily focusing on Iran. However, Netanyahu could not avoid the controversy surrounding his judicial plan, as Chancellor Scholz publicly criticized the proposed changes and urged Netanyahu to accept Herzog's plan. In response, Netanyahu asserted that he would never weaken Israel's democracy.
DEFENSE
On Saturday night, a suspected Lebanese terrorist managed to cross undetected into Israel. The terrorist then traveled 37 miles south to the Megiddo Junction, where he planted a bomb that exploded on Sunday morning, severely injuring Shareef ad-Din, 21, from the village of Salem. The terrorist successfully made it back to the border area, but was spotted near the town of Ya'ara and subsequently killed by anti-terror security personnel. The group responsible for sending the attacker remains unknown, but Hezbollah is the prime suspect.
On Thursday, Israeli forces entered Jenin to apprehend three terror suspects. During the ensuing gunfight, four Palestinians were killed and 18 wounded. With Ramadan just a week away, the security establishment is concerned that the level of violence here could escalate further in the coming weeks.
UKRAINE
The Israeli government has approved the sale of anti-drone electronic warfare equipment to Ukraine. These systems jam drone communication, rendering them ineffective. This marks the first time the Israeli government has authorized the sale of equipment explicitly intended for Ukraine's defense. I believe that Israeli factories are working diligently to replenish the armaments that Allied nations have been supplying to Ukraine.
ISRAEL-US RELATIONS
A disconcerting Gallup poll was released on Thursday, revealing that for the first time, Democrats hold a more sympathetic view of Palestinians than Israelis. The poll, which surveyed 1,008 US adults, found that Democrats now have an 11-point net negative view of Israel, favoring Palestinians by a 49 to 38 margin.
TEL AVIV LIGHT RAIL
The long anticipated launch of Tel Aviv's first light rail line has been postponed once again. Initially slated to commence operations on Independence Day in April, the opening has now been delayed by at least a month, if not more
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BUSINESS
Inflation in Israel remains higher than expected, with the latest data for February indicating an inflation rate of 5.2%, whereas analysts had anticipated a drop to 5%. Apartment prices, which are not included in the Consumer Price Index (CPI), actually experienced a decrease last month.
This week, Israeli banks reported record profits. Bank Leumi revealed a net profit of NIS 7.7 billion for 2022, a 28% increase from 2021. The net profit for the fourth quarter amounted to NIS 2.3 billion, compared to NIS 1.5 billion in the same quarter of 2021.
Mizrahi Tefahot Bank also reported record profits last year, with earnings of NIS 4.47 billion, a 40.3% increase compared to 2021. The net profit for the fourth quarter was 60.1% higher than in the corresponding quarter, reaching NIS 1.1 billion.
Mitiga which specializes in cloud security, announced that it raised $45 million in a Series-A round led by ClearSky Security with participation from Samsung Next, Blackstone, Atlantic Bridge and DNX. Co-founder and CEO Tal Mozes said that the fresh cash will be put toward product development and expanding Mitiga’s 56-person workforce. The Series-A values Mitiga at over $100 million.
Zim reported strong earnings for the year. Revenue of $12.56 billion, Net Income of $4.63 billion, Adjusted EBITDA[1] of $7.54 billion, and Adjusted EBIT of $6.15 billion. Zim’s fourth quarter was down from the fourth quarter a year earlier, as shipping rates continued to fall after their extremely high rates during the Covid crisis.
A PIECE OF HISTORY— ILLEGAL IMMIGRATION
Illegal immigration to Palestine can be traced back to the era of the Ottoman Empire. In the initial phase of the British Mandate, there was little need for such immigration, as British policy allowed a significant number of Jews to settle in Palestine. However, with the rise of Hitler and the subsequent surge in Jewish emigration, Revisionist groups began organizing small cohorts of illegal immigrants.
In 1938, the Histadrut established the Mossad L'Aliyah Bet as a central coordinating body for illegal immigration. Prior to the outbreak of World War II, 41 ships carrying around 16,000 illegal immigrants reached Palestine. Throughout the war, efforts to facilitate illegal immigration persisted. Between 1939 and 1944, 26 vessels set sail, mainly from Bulgaria and Romania, with five sinking en route. In total, 16,500 individuals embarked on the journey to Palestine during the war, while an additional 3,740 immigrants entered the region via land routes.
In the aftermath of World War II, over 600,000 displaced Jews remained in Europe. From 1945 to 1948, 69,000 of these individuals were transported from Europe by ship. Although most of them were intercepted by British vessels and subsequently interned in Cyprus, illegal immigration highlighted the urgent need for a Jewish State to accommodate Jewish refugees. A significant number of these illegal immigrants ultimately found themselves in British detention camps located in Cyprus.
A TASTE OF TEL AVIV — NORTH ABRAXAS
RESTAURANT REVIEW, by Tali Schulman
One of the many restaurants in Eyal Shani’s portfolio, North Abraxas puts a slightly more formal touch on his classic style. Everything’s meant for sharing, there’s a large variety of delicious fresh produce, and the menu changes daily based on what’s available. They do, however, offer plates (usually), and have a slightly more customer service-oriented attitude than many of the sister restaurants. But for me, what sets North Abraxas apart from the rest are the seats at the bar. You get the hectic vibe on a smaller scale, with the opportunity to interact and really enjoy the creation of your meal. Definitely a great date spot. The menu offers a variety of veggies, fish, and meat, making it a good choice for almost any type of eater. It’s hard to pinpoint a favorite dish, since the menu changes so frequently — but if they have the Pizza Bianca with zucchinis, don’t skip it. Otherwise, the menu offers recommendations highlighted in different colors, so it's not too hard to find the best stuff
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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!