Tel Aviv Diary May 19, 2023
Gaza Clash Ends,Jerusalem Day,Judicial Reform,Ultra Orthodox Demand More Money, History, Business News and a Restaurant Review
The recent clash with Gaza came to a close on Saturday night, concluding with a ceasefire. Israeli authorities have been emphasizing the extent to which the country's deterrence capabilities have been greatly strengthened due to our successful neutralization of a substantial part of Islamic Jihad's military leadership.
However, this narrative is not unfamiliar. Following every altercation with Gaza, our political leaders laud the efficacy of our actions, but reality often tells a different story. Beyond providing Rafael Advanced Defense Systems with more opportunities to manufacture Tamir intercept missiles, it's challenging to discern any meaningful progress achieved by the continuous loop of Gaza operations — apart from eliminating some adversaries, sadly, along with some innocent civilians.
There is an urgent need for an alternative approach.
JERUSALEM DAY
Yesterday marked Yom Yerushalayim (Jerusalem Day), the day commemorating the anniversary of the Six-Day War, when the Israeli army took control of Jerusalem's Old City and Arab areas in East Jerusalem. Despite potential threats of confrontation and possible retaliation by Hamas, this year’s commemoration, transpired in relative calm. Although minor clashes occurred between marchers and East Jerusalem residents (often instigated by the former), the day was notably more tranquil than anticipated.
In the immediate aftermath of the Six Day War, Yom Yerushalayim was a significant event, almost equal to Israel’s Independence Day in its celebratory vigor. Over time, however, the celebration has become mostly a tradition among the National Religious in Israel’s and the Modern Orthodox in the United States. For instance, a modest parade was held on Wednesday night in Tel Aviv, in which primarily National Religious women and their children participated.
Capture of Jerusalem’s Old City marked the beginning of a deeply held belief by many in the National Religious Camp — that this event constituted a pivotal stride towards ushering in messianic times; a belief predominantly propagated in Merkaz Harav (Kook) in Jerusalem. Prime Minister Netanyahu attended a celebration at Merkaz Harav on Thursday night, joining yeshiva students and other dignitaries for Jerusalem Day. Looking back, one notable misstep following the Six-Day War was the decision to redefine Jerusalem's municipal boundaries to encompass numerous Arab villages and areas not traditionally considered part of the capital city. This move intensified the city's demographic challenges. Today, the Arab and ultra-Orthodox populations collectively constitute a majority in the holy city, necessitating continuous, substantial financial support from the National Government to uphold the municipal governance.
JUDICIAL REFORM
If you seek some clarity on the current situation regarding the government’s proposed “Judicial reform”, I must admit that, like most Israelis, I too am in the dark about what precisely is unfolding, and whether any agreement is within reach. In a rare interview with Channel 13 News, former Israeli President Ruby Rivlin cautioned against making compromises that might undermine Israeli democracy
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Reports on the progress of talks between the government and the opposition have been inconsistent, leaving the situation ambiguous. There are also rumors that Justice Minister Levin may resign if the proposed Judicial reform is not passed— as it is becoming evident, Netanyahu is not keen on moving forward with this legislation. Given the substantial cost to the nation and the possibly limited benefits to his parochial interests, Netanyahu’s motivation to pass the sweeping proposed legislation seems to have waned. Last Saturday evening’s demonstration (week 19) against the proposed Judicial reform was cancelled due to the ongoing conflict in Gaza, but protests will resume this week.
Meanwhile, the protest movement's focus is increasingly shifting towards the astronomical funds being allocated to the ultra-Orthodox and their institutions. The Ministry of Finance's chief economist recently published a report indicating that incentives offered to yeshiva students could cost the economy $3 trillion over the next 30 years. Unsurprisingly, catering to the ultra-Orthodox's demands might further impoverish the community. By giving Yeshiva students additional financial incentive to stay and study instead of getting a job, coupled with eliminating the only incentive the ultra-Orthodox leadership had to mandate the teaching of basic skill to their students, will ensure ultra-Orthodox students never receive the skills to compete in a modern economy. On Wednesday night, a protest march against the granting of these increased sums occurred in B’nei Brak.
As a reminder — before the most recent election, the Belz chasidim agreed to teach core skills, such as: math, reading, and English to their students in return for an increased allocation of government funding. Netanyahu, (then the opposition leader), promised the ultra-Orthodox need not fear, if he was re-elected Prime Minister they would receive full funding without having to teach these "dreaded" core skills.
Despite the substantial funding the ultra-Orthodox community are slated to receive, a mini-coalition crisis has developed. The Agudat HaTorah faction has threatened to vote against the budget, unless every dollar promised them in the coalition agreement is delivered. Facing dwindling tax revenue, due to a contracting economy, the Ministry of Finance remains unwilling to compromise. Meanwhile, Minister Ben-Gvir is pressuring the government for more funds allocated to the Galil and Negev.
The budget must be passed within two weeks to avoid the call for a new election. It's probable that these disputes will be resolved by then, but as I've often said, anything is possible in Israeli politics.
MUNICIPAL TAXES
The proposed budget bill includes legislation that would redistribute wealth from some of the most affluent cities to their less prosperous counterparts. This stems from the belief that the wealthier cities often benefit significantly from the extensive commercial properties within their jurisdictions, leading to higher tax revenues. Proponents argue that this initiative would incentivize these prosperous cities to focus more on residential construction instead of commercial development.
The rationale behind this claim, while logical, does not necessarily hold true across all cities. For instance, there is no definitive evidence to suggest that Tel Aviv, the wealthiest city, deliberately discourages residential construction in favor of commercial properties. A critical concern raised against this bill is the potential for imbalanced benefits. It appears that cities predominantly inhabited by the ultra-Orthodox community stand to gain the most; while cities with largely secular populations bear the brunt. This predicament has sparked another facet in the ongoing debate over the proposed law.
Interestingly, it's not just left and center leaders who oppose this legislation, but also mayors from the Likud party, who fear the potential detrimental effects on their constituencies. Hence, this controversy isn't merely a theological dispute, but extends to the socio-political arena, exposing fractures even within the same political party.
GEORGE SOROS AND ANTISEMITISM
I've yet to address the topic of Antisemitism in America in this forum, but recent events have prompted a discussion, particularly given the involvement of the Israeli government. Just a few days ago, Elon Musk launched a Twitter tirade against George Soros, accusing him of hating humanity and making an unfavorable comparison between him and “Magneto”, a villain from X-Men (both Soros and Magneto are survivors of the Holocaust.)
Soros has long been a target of right-wing pundits who blame him for any and all actions associated with “the Left”. As I expressed in a panel discussion on i24News a fortnight ago, I believe that specific criticism of Soros's actions is obviously permissible. However, when assertions are made that Soros is behind countless left-wing initiatives, the faultfinding starts to mirror Antisemitism reminiscent of conspiracy theories, like the Protocols of the Elders of Zion.
The Anti-Defamation League (ADL) has also criticized these attacks by Musk on Soros. Today, Israeli Minister Amichai Chikli, tasked with combating Anti-Semitism, tweeted in defense of Soros
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Adding to the complexity, Prime Minister Netanyahu quoted a news story from the right-wing Israeli newspaper, Israel Hayom, on his Facebook page. The article alleges a partnership between Soros and Iran; a claim ostensibly based on a brief interaction by the then-UN Ambassador of Iran, who is now the foreign minister with an organization to which Soros once donated.
The story, that Soros is working with Iran, appears to be an unsubstantiated fabrication. As the person overseeing Mossad and all Israeli intelligence agencies, Netanyahu is in a position to discern the veracity of such claims. Yet, in a seeming attempt to curry favor with American right-wing groups, it appears that Netanyahu and his ministers are willing to sacrifice the reputation and safety of American Jewry.
A Piece of History— ISRAEL’S Independence
From the moment the United Nations approved the Partition Plan, Palestine had been embroiled in civil war. The Arab inhabitants of Palestine rejected the UN proposal and pledged to resist it by force. Meanwhile, the British, the nominal rulers of the region, did little to intervene in the conflict. Despite early obstacles, the emerging Jewish military force, the Haganah, gradually gained an advantage. The British had declared May 15th as their final day in Palestine, and the surrounding Arab states threatened to attack if the Jews declared their statehood. Influential figures globally, including US Secretary of State Marshall, implored the Jewish leadership, helmed by David Ben Gurion, not to declare a state, cautioning against potential defeat by the larger Arab armies.
Yet, Ben Gurion recognized this as an unmissable historic opportunity and persuaded the Zionist Executive to declare independence on the afternoon of the 14th, since the 15th was a Saturday. The ceremony took place at the Hall of the Israel Museum on Rothschild Street in Tel Aviv. The hall was crowded, and members of the Zionist Executive occupied the front row, all except for Chaim Weizmann. At 4 PM, attendees rose to their feet to sing Hatikvah. Then, Ben Gurion commenced reading from the hastily drafted declaration of independence. Upon completion, the declaration was unanimously accepted. Hatikvah echoed in the hall once again, and Ben Gurion pronounced the establishment of the state. In a span of just 30 minutes, the most consequential event in modern Jewish history had transpired. Within hours, the United States recognized the new provisional government, and by dawn, the encircling Arab armies had begun their assault
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BUSINESS
Laguna Health has raised $15 million. The A-round was led by Semper Virens. HC9 ventures also took part. This brings the total sum raised by the company to $21 million. Laguna Health has developed an AI-based program to improve patient care in hospitals.
IBM has purchased the Israeli cyber company Polar Security for $60 million. Founded in 2020, Polar Security specializes in Data Security Posture Management. It had raised only small sums of money until now, so the early investors and the management will do well in this acquisition.
Israeli gaming company, Neo Games has been sold to the Australian gaming company Aristocrat Leisure for $1.2 billion. The price is a 30% premium over the share price of the company.
CRYPTOHUB LTD has raised $6 million.
Qualcomm (NASDAQ: QCOM) has entered into a definitive agreement to acquire Autotalks, which makes dedicated chips used in vehicle communications to improve road safety. The chips would be incorporated into Qualcomm’s Snapdragon product line for assisted and autonomous driving.
Swap raised $11.5 million, in an A-round led by Activum XTX Ventures Entree Capital and SG Capital. The company has developed an AI-assisted program to allow architects better render their buildings and streamline their work flow.
ZIM Integrated Shipping Services Ltd., along with other investors, announced the initial closing of an $8 million financing round in Spinframe. ZIM led this investment as part of its strategy to invest in early-stage companies involved in the digitalization of supply chains who offer novel cutting-edge services with high growth potential. Spinframe develops vehicle-inspection systems based on artificial intelligence (AI), computer vision, and machine-learning technologies, that create “Digital Twins” for vehicles throughout the supply chain and detect anomalies from the assembly line throughout the vehicle journey to the dealership and end customer.
On Thursday, Elbit Systems Ltd. announced that as part of an agreement between the Israeli Ministry of Defense and the Netherlands Ministry of Defense, it was awarded a contract worth $305 million to supply Precise & Universal Launching System (PULS) artillery rocket systems to the Royal Netherlands Army. The contract will be performed over a period of five years. Under the contract, Elbit Systems will supply 20 PULS artillery rocket systems integrated on the COMMIT (previously DMO) selected truck platform, as well as rockets and missile of various ranges and training and support services
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Elbit PULS is a system designed with an open architecture approach, supporting future growth, the ability to integrate legacy C4i solutions, and the flexibility to adapt to specific customer requirements. PULS provides a comprehensive, cost effective solution, supporting the firing of both free-flying rockets and precision guided rockets and missiles ranging from 12km and up to 300km. The PULS launcher is a fully adaptable launching system and can be mounted on a broad range of wheeled and tracked platforms, providing a significant reduction in maintenance and training costs for legacy fleets. In addition, Elbit announced this week that it was awarded a contract valued at approximately 20 million Euros, as part of a defense export agreement signed between the Israel and Montenegro Ministries of Defense to acquire Elbit Systems-made weapons including mortar munition systems and training equipment.
A TASTE OF TEL AVIV— Cafe Tamati
RESTAURANT REVIEW, by Tali Schulman
Today we go to one of my favorite places in all of Tel Aviv, Cafe Tamati. Tamati started as a tiny little shop on one of the side streets of Shuk Hacarmel that I regularly frequented when I lived in the neighborhood. When I say tiny, I mean really tiny, more than 3 people couldn’t comfortably stand inside at once. Despite the lack of space, Micky and Meirav created the perfect neighborhood coffee spot. Always the best coffee, an incredible variety of the best coffee tools and gadgets, and most importantly the loveliest people who will always remember you by name. I always enjoyed stopping in to buy coffee beans (their home-blend), or to grab a coffee, or even better their iced Matcha (they make the best ones in the city). It was a lovely experience every single time. Since then, they added a partner and moved locations to a much bigger space at Carmel 12 (the bottom of Shuk Hacarmel), as well as La Cite next-door (more about that later), all while keeping the same initial charm, and of course the love for people and coffee they started with. If you like coffee (or matcha), or are in the market for anything coffee related, you don’t want to miss this one.
For more Tel Aviv restaurant recommendations, you can find me on Instagram @talischulman where I save all my food adventures in my highlights!