Terror Strikes Tel Aviv: Israel Week Ending April 8
4th terror attack in 3 weeks, government loses majority in Knesset,and economics
Terror
The grey morning in Tel Aviv reflected the mood. Yes, the terrorist had been found and killed while we were sleeping … but now what? Few live under the fantasy that peace with our distant neighbors will bring us peace at home. It was less than a year ago when we all huddled in our homes and bomb shelters, as rockets rained down on Tel Aviv. Then, our high-tech interceptor missiles protected almost all of us. But how are we supposed to protect ourselves from a lone gunman with a pistol?
It started as a typical Thursday night in Tel Aviv. The streets were packed. The bars were already overflowing. Suddenly, on Dizengoff Street, at a bar at the corner of Ben Gurion Boulevard, a terrorist pulled out a gun and started shooting; Eytam Megini and Tomer Morad childhood friends from the Tel Aviv suburb Kfar Saba were killed on the spot, on Friday afternoon the fight to save the life of Barak Lupin was lost and he became the third victim: seven others were wounded.
I was about a mile away, on the street that becomes Dizengoff. Within moments, there were notifications on my phone with reports of an attack. The road quickly filled with ambulances and police vehicles racing to the location.
My son was on his way to meet me and showed up a few minutes later. My daughter texted to ask if something was happening on Dizengoff Street. I told her there had apparently been a terror attack, and immediately asked her where she was. Once she responded that she was in a different part of the town, I relaxed a little. However, as the sirens continued to wail, it was clear something terrible had happened.
By the time we got home, just a few minutes later, several young people sought shelter in the lobby of our apartment building, after dining at the hamburger restaurant across the street. They were very happy when I came back down to lock our building’s front door, where they were waiting until one of their parents could arrive by car to pick them up. Bus services in central Tel Aviv were suspended, as over 1,000 police and army personnel undertook a manhunt for the gunman who had got away… Meanwhile, the streets of Tel Aviv emptied, leaving only security personnel patrolling with guns at the ready.
The terrorist was from Jenin. This morning, his father, a retired Lt. Col. from the Palestinian Authority Police and from a family of terrorists, applauded his son’s actions. It's unclear what comes next. We are currently in the month of Ramadan, a period that has been particularly violent in recent years.
Last night’s deadly assault was the fourth terror attack in an Israeli city in three weeks, (preceded by attacks in Netanya, Hadera, and Beersheva, in which a total of 11 were killed). What comes next? Some on the left contend, “If only there was a peace process…” (while I am in favor, the most significant terror attacks in the country took place during a peace process). The far-right exclaims “Expel them all”. I won’t even dignify that solution with a response. So, what now? I wish I had an idea.
Politics
Until the attack, the news in Israel had been dominated by the surprise announcement of coalition whip Idit Silman’s announcement that she decided to leave the coalition, thereby robbing the coalition of a majority in the Knesset. Her stated reason for “jumping ship” was an alleged comment by Minister of Health Nitzan Hurwitz to allow chametz into Israeli hospitals during Passover. For some, that seemed like a legitimate grievance. However, it soon became apparent that what Hurwitz had actually said was he would abide by the Supreme Court’s decision ruling it improper to physically search people for chametz at hospital entrances.
Instead, the true reason behind Silman’s decision resulted from unrelenting pressure applied by her religious community, who branded Silman a traitor for sitting in a government with left-wing and Arab parties. Silman’s husband, who is a strong Netanyahu supporter, was reportedly part of the pressure campaign to persuade her to leave the coalition.
The immediate media buzz maintained that Netanyahu was on his way back to the premiership. Fortunately, that is clearly not the case. There are three ways for a government to fall. First, is a “vote of ‘no confidence,’” in which an alternative government is presented; second, is a vote by the Knesset to disband; third, is the Knesset’s inability to pass a budget.
The third scenario is now a real possibility. However, since the government passed a two-year budget, that sequence of events only becomes plausible in March 2023. As to the first option, nothing has changed. Silman was part of the Yemina party, and the reason Yamina joined the “Alternative/Change” government was because Netanyahu had been unable to form a government, even with their votes. Those numbers have not changed. Even if all of the Yemina party was to quit, including Bennett, Netanyahu, would still not have 61 votes to form a coalition.
The second option is real challenge, i.e., getting 61 votes to disband the Knesset and call for new elections. However, enacting that strategy is also not straightforward. The ultra-Orthodox parties are not enamored with the idea; fearing they may lose seats in a new election.
Finally, the Joint Arab List, which likes to vote for any resolution to bring down any government, is afraid of backlash from its constituents. Ra’am’s participation in the coalition is supported by 67% of Israeli Arabs. Ra’am has been “bringing home the bacon,” getting projects and resources for the Arab-Israelis, as only a member of the government can do. Thus, the Joint List is liable to suffer the wrath of the voters, if it chooses to topple this coalition. Furthermore, the last thing the Joint List wants is a return of Netanyahu to power, with the support of far-right-wing Betzalel Smotrich. In fact, Joint List MK Ahmed Tibi might be persuaded to support the government at key moments, in order to keep this new coalition afloat.
It's sad that the only reason for all this political maneuvering is hatred for the other. One can certainly argue how good a job Prime Minister Bennett is doing. However, one thing this government is not is a leftist government. While both Meretz and the Labor Party are parts of the coalition, their impact has been very limited. Israel has clearly embraced a more robust approach to the environment and global warming under Minister Zandberg (Meretz), but there is no real opposition to that activism because Israel's environmental policy choices are not left vs. right issues. Transportation Minster Michaeli (Labor) has pushed the Ministry to put more emphasis on public transportation, again not a very controversial issue, and certainly not a left-right disagreement in Israeli politics.
DEFENSE
As a result of the war in Ukraine Germany has decided to drastically increase its defense spending. One of the systems Germany seems ready to acquire is Israel’s anti-missile Arrow-3 system. Negotiations are underway to finalize the purchase.
This week, the Israeli Navy concluded a joint operation with the US Navy, which included the refueling of an Israeli naval vessel at sea. The Israeli Air Force ended this week by conducting a joint training exercise with Greek and American Air Forces.
ECONOMY
Minister of Finance Avigdor Lieberman announced he would reduce taxes on gasoline by 50Ag/per liter. Taxes represent over 50% the cost of gas. As the price of petrol has skyrocketed in the last months, so has the call for relief. Lieberman justified his decision by stating the government deficit was much lower than expected, with tax revenue soaring.
Viz.ai raised a $100 million Series-D round, at a $1.2 billion valuation. The company develops an AI-powered disease detection and care coordination platform, which is already in use in over 1,000 hospitals.
On Tuesday, Appwrite announced it had raised $27 million in its Series-A financing round, led by Tiger Global Management, and followed by Seed-round participants Bessemer Venture Partners, Flybridge Capital Partners, Ibex Investors, and Seedcamp. Appwrite is a self-hosted solution that offers developers a set of easy-to-use REST APIs to manage their core backend needs.