Tel Aviv Diary
New Government's First Steps, Supreme Court Reviews Deri Appointment, Housing Market Peaks, Restaurant Review and more
THE NEW GOVERNMENT
It has been one week since the new government in Israel was sworn in, and events so far have been concerning, punctuated by reminders of why the next few years could be perilous for the country's future. The “changing of guard” ceremonies at the various ministries were marked by a lack of civility from the incoming ministers towards their outgoing counterparts — with some even proudly boasting their intention to overturn the previous government's policies, without regard for their merit. This behavior is alarming, as it suggests a lack of respect for the consequences of such actions, and a prioritization of political gain over the well-being of the country. Such potentially groundless, vindictive, populist actions may lead to instability and poor decision-making in government, which could negatively impact Israel's future.
At the Education Ministry ceremony, new Minister Yoav Kish announced his plans to overturn the outgoing Minister's major reform aimed at eliminating some Bagrut (matriculation) exams in the humanities and social studies. As an aside, I personally believe that all Bagrut exams, which appear to be based almost solely upon memorization of facts, are a waste of time, especially in a country where many of those who take these tests are about to spend the next 2-3 years of their lives serving in the military. However, for Kisch, the fact that the previous government implemented this reform appears to be the sole reason to warrant its immediate repeal. The fact that it’s currently the middle of the school year, and students have been working towards projects that were part of the reform for the last four months did not seem to matter to Kish.
Minister of Transportation Miri Regev announced she plans to eliminate mass transit lanes instituted on highways by her predecessor. Regev argued these lanes would be better used by cars, ignoring the fact they appear to be effective — with the new lane in Jerusalem reportedly seeing over 160 buses per hour during rush hour. Regev also stated she will not support the construction of the Metro— a project endorsed by the Likud party and considered a national priority by many — until there is a plan to build the train line from Dan to Eilat. It is unclear what impact this decision will have on the already delayed Metro project; a public works upgrade which has been needed for over 50 years.
On the same day, newly appointed Minister of Finance, Bezalel Smotrich announced he had ordered his staff to prepare the necessary regulations to abolish the tax on sugary drinks and single-use plastic cutlery. The tax on sugary drinks was implemented in an effort to reduce its consumption and address the rising cases of Diabetes in Israel, (a problem that plagues many other Western countries). However, the issue became a cause célèbre for the ultra-Orthodox community, who used these policies to criticize the previous government. Now, despite pleas from ultra-Orthodox medical professionals to retain the law, Smotrich has eliminated the tax. It is interesting to note that when President Obama proposed a similar tax in the US, Coca Cola became a major donor to the NAACP, and the organization subsequently stated the potential tax was racist, citing higher rates of sugary beverage consumption among African Americans.
This week, the names of several controversial candidates were proposed to fill the positions of Director General at various ministries in Israel. It is worth noting that Israel’s Cabinet Secretaries are typically chosen based on political considerations and not relevant education or experience (unlike in the US). One particularly questionable appointment is that of a political operative from Ashdod – with no relevant experience — as Director General of the Ministry of Transportation. In response to the Civil Service Commission's decision to reject the appointment due to the candidate's utter lack of qualifications for this position, Minister Regev responded that the Commission’s role is advisory, and that she intends to install her selected candidate subject to government approval. Netanyahu has indicated that he will bring the nomination up for approval on Sunday.
Another appointment that has raised concerns is that of former Likud MK Osnat Marks as the Director General of the Ministry of Science and Technology. Marks, who has a background in Law, and did not perform well in the Likud primaries, is expected to replace an Astro-Physicist with degrees from the Technion, who worked on the Iron Dome and Hertz missile intercept systems. These are just a few examples of the questionable choices being made by the new ministers.
On Tuesday, National Security Minister Itamar Ben-Gvir ascended to the Temple Mount, despite a request from Prime Minister Netanyahu to refrain from doing so. Ben-Gvir’s 20-minute visit to the compound sparked outrage in the Arab world, and led to criticism from countries with which Israel has recently improved relations. As a result, Netanyahu's previously scheduled visit to the UAE this week has been delayed. In addition, the UN Security Council held a meeting on the matter last night. Ben-Gvir’s actions have brought the Palestinian issue back to the forefront and made it clear that a far-right-wing government is incompatible with increased, warming relations with the Muslim world. It is unlikely Israel will be able to both expand control in the West Bank and, at the same time, improve its ties in the Gulf region.
Wednesday night, on the eve of the scheduled Supreme Court session on the appointment of Aryeh Deri as a minister in the new government, Justice Minister Yariv Levin unveiled his plan for “Judicial Reform.” Among other profound intended changes, Levin’s reform calls for granting the ability of 61 members of parliament (MKs) to override the Supreme Court's determination a law passed by the Knesset is in violation of Israel's Basic Laws; the political appointment of judges; the elimination of independent legal advisors in various ministries; and elimination of the ability to challenge government actions in court based on those actions being deemed “unreasonable”. Both Levin and Netanyahu claim these steps are all necessary “to balance the power among the three branches of government.” However, in reality, at present, the court is the only separate branch of government — as the Knesset and the government are almost always aligned, and there is no separation between them. Levin and Netanyahu's true intention appears to be to eliminate any body that could hold the government accountable.
Famed US Constitutional Law scholar Alan Dershowitz, who is a friend of Netanyahu, tried to persuade him not to go down this road. In an interview on Wednesday, after Levin’s reforms had been announced, Dershowitz said: “The court is not supposed to reflect the will of the majority, rather protect the minority. If it [the Supreme Court] is weakened, he [Netanyahu] will find it very difficult to defend Israel internationally.”
According to an opinion poll released Thursday night, Levin’s plan is not popular with the Israeli public.
Earlier on Thursday, the Supreme Court heard the case challenging the appointment of Aryeh Deri as Minister. The Knesset had specially modified a Basic Law to allow for this appointment. However, the challenge to the law focuses on whether it is a personal law, rather than on the validity of the law itself. Furthermore, the challengers argue that Deri’s appointment does not meet the norms of Democracy, i.e., a civil servant who committed crimes while in office should not be allowed to hold office again. During their deliberations, the judges concentrated on whether Deri purposely misled the lower court into believing he would retire from politics in order to obtain a plea agreement that would not include jail time. In addition, the judges questioned why Deri did not approach the head of the election committee to determine his eligibility to serve as a minister, and instead chose to have a Basic Law altered. It is impossible to predict the outcome of this case, though legal observers believe there is a great likelihood the court will rule that Deri cannot remain a minister. It is unclear what will happen after that decision is released.
MILITARY
Israel reportedly attacked targets close to Damascus Airport on Monday night.
All of the IDF’s combat ground troops will be equipped with special custom uniforms that are fire resistant. Until now, these more protective uniforms were only given to the special forces; however, they have been proven effective in limiting injuries and death. The cost will be NIS 50 million.
Incoming IDF Chief of Staff Herzi Halevi, will take his new post on January 17th, at the end of Aviv Kohavi’s tenure. With the announcement of his first appointment, Halevi named a new IDF spokesperson, continuing the misguided practice of selecting a combat officer — with no media experience. As incoming IDF spokesperson, Halevi tapped Brigadier General Daniel Hagari, a high ranking Naval officer, who served as Commander of the Israeli Commando Yami, Israel’s equivalent the US Navy Seals.
ECONOMY
2.67 million tourists arrived in Israel this past year. These visitors added 13.5 billion shekels to the economy. This figure is still 40% down from pre-Covid statistics. Just to understand the tourism scale — France received 80 million tourists in 2019.
Israel’s housing prices may have peaked. While builders have not been lowering prices, they have begun to throw in many “freebies” (such as including a free kitchen with appliances, or first few months of mortgage pre-paid). Meanwhile, land auctions prices have dropped precipitously during the last three months; as interest rates have gone up.
BUSINESS
Elbit Systems Ltd. announced it had been awarded a contract valued at approximately $107 million to provide, operate, and maintain the new Main Battle Tank (MBT) simulation and training centers of the Israeli Defense Forces' (IDF) Armored Corps. These new training centers will train commanders and soldiers of the Armored Corps and will maintain readiness of both regular and reserve units. The centers will be delivered over a three-year period and the contract includes operation and maintenance services for an additional period of fifteen years
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The future simulation and training centers will operate on the IDF’s cloud, using the Elbit Systems' cloud-native platform-agnostic OneSimTM simulation software infrastructure. The IDF's new MBT training systems will include high-fidelity platform trainer turrets and high fidelity platform trainer drivers with accurate physical models. The training systems integrate the tank’s operational sub-systems and simulate main and secondary armament weapon capabilities, all connected to an innovative common synthetic simulation environment, aiming to provide commanders and tank crews with the capability to experience a range of real-life battlefield challenges.
US-based RMS (Revenue Management Solutions) has purchased OrboGraph for over $100 million. OrboGraph is focused on payment optimization and automation, as well as fraud detection for financial institutions.
A PIECE OF HISTORY— FOURTH ALIYAH
With America's gates closed to new immigrants, aliyah surged in Palestine. In 1924, the Fourth Aliyah began with the arrival of 12,000 immigrants to Palestine, a significant increase from the 6,000 immigrants who arrived during the previous three years. The following year, immigration rose even more, with 35,000 new immigrants arriving in Palestine. These immigrants differed from the earlier settlers, who were mainly young and single, as they were mainly married and middle class, and many were well-off financially. This marked the start of industrial development in Palestine. However, by 1926, immigration slowed down, and by the end of the decade, Palestine faced economic crisis. For a number of years, emigration exceeded immigration.
A TASTE OF TEL AVIV — MILGO MILBAR
RESTAURANT REVIEW, by Tali Schulman
Let’s take a walk down Rothschild Blvd. and step into Milgo Milbar, on the corner of Rothschild and Marmorek, right by HaBima Theatre (one of my favorite spots in Tel Aviv). Since its founding almost a decade ago, Milgo has become increasingly popular, shifting from a wine and seafood bar to a fine dining establishment, lead by Chef Moti Titman — this year landing number 40 on the list of 50 best restaurants in the Middle East. At quick glance, you will notice the menu highlights seasonal ingredients, with a heavy focus on fish, seafood and vegetables. While all of their dishes are lovely and refreshing, the most unique (and in my opinion, unexpected) dish is the charred onion agnolotti & veal brain. I promise it is less intimidating than you would expect, and truly very delicious! If you’re looking for a place to eat delicious fresh food in an incredibly central location, this is the place. Fun fact, I was a waitress there the year they opened, so I can tell you from experience they have significantly elevated their menu since.
For more Tel Aviv restaurant recommendations, you can find me on Instagram @talischulman where I save all my food adventures in my highlights!