On July 24, 2023, one of Israel's biggest political crises in recent decades erupted when the Knesset passed a legislation that would limit the High Court of Israel’s ability to review the “reasonableness” of government decisions after a seven-month wait. The bill passed by a 64-0 vote, as the opposition boycotted the vote and stormed out following the session.
The approval of the law reflected the culmination of the turmoil that Israel had experienced over the previous months. This included public protests lasting around 30 weeks, along with the mounting pressure exerted by the military institution who threatened non-compliance with voluntary service if the judicial reform project received approved. This was also exacerbated by economic confusion.
A Controversial Modification
The passage of the new law is the first in a series of laws that the Israeli coalition government aims to implement to reduce the influence of the judiciary in favor of the executive and legislative powers. Following the formation of the current administration led by Benjamin Netanyahu, the Minister of Justice Yariv Levin, stated the cabinet's intention to proceed with implementing several legislative reforms in the Knesset. These would drastically alter the judiciary's authority and create a new power balance in the country.
Netanyahu and his coalition allies argue that legislative reforms are required to limit the Israeli Supreme Court's "excessive power" and restore the government's capacity to exercise its functions, which they claim have been seized by the court. This was evident in the Minister of Justice's statement following the passage of the law, in which he said, "We have taken the first step in an important historic process of overhauling the judiciary.”
Opponents and critics of these reforms believe they undermine the notion of separation of powers, while the current government is attempting to remove any limitations on its power, thereby plunging Israel into the deepest and most unsafe constitutional - and even existential - crisis in its history. The concern, according to the opposition, is that Israel does not have a constitution and is instead governed by a series of regulations known as "Basic Laws." There are 13 Basic Laws that define the concept of the government system, the powers of the law authorities, the relation between the authorities, and the protection of human and citizen rights. The Israeli Supreme Court's interpretation of the Basic Laws and its use to veto specific government and Knesset decisions frequently sparked crises. The opposition believes that the new reforms undermine the values upon which these laws were based.
A “Levin” project
In some Israeli circles, the judicial reform project is referred to as the "Levin project"; this is in reference to Minister of Justice Yariv Levin, who drafted the legislation and has fought to progress it against pressure from the opposition. This project centers on four fundamental changes to the legal system, namely:
- Limiting judicial review of the powers and decisions of the government, its ministers, and executive agencies.
- Undermining the ability of the Supreme Court to assess Knesset legislation.
- Changing the way by which Israeli justices are nominated and selected and giving the government nearly total control over the process.
- Undermining the power and method of appointing the Attorney General and legal advisors to the government, so that they become “formal” positions chosen by the ministers.
Levin created these amendments through eight bills, two of which have already passed: the "Prime Minister's incapacity" law in March 2023, and the "limiting reasonability" law on July 24. While three bills received first readings, they are still pending approval in the Knesset's second and third readings. Three other projects are still awaiting a preliminary offer.
The "Prime Minister's Incapacity" law strengthened this position by stating that the judiciary has no authority to remove the Prime Minister "except due to physical or mental incompetence.” Critics believe this bill was clearly intended to protect and immunize Netanyahu in light of the corruption charges he faces.
The "reasonableness law," which was repealed by the new law, is one of the procedural tools accessible to the Israeli judiciary, specifically the Supreme Court judges. The courts use it to exercise judicial oversight over the many branches of the executive authority, which are represented by the government and its ministries and official entities. The recently passed law would prevent Israeli courts, including the Supreme Court, from applying this provision to decisions taken by elected officials.
This law was previously used to refuse to appoint ministers and security officials, such as Yossi Ginossar, a former senior Shin Bet official whose appointment as director general of the Ministry of Construction and Housing was rejected in 1993, after he was accused of ordering the execution of the "Bus 300 Affair" perpetrators. Several months ago, the court also canceled Netanyahu's appointment of Aryeh Deri as Minister of the Interior, Health, and Finance because he was charged with corruption and tax evasion.
With the courts no longer able to contest government choices, it is likely that the Netanyahu government will strive to appoint more of its hard-right foes, whose decisions may sway local and international public opinion.
Reactions
Following the passage of the law, Netanyahu reaffirmed that the majority of Israelis supported the judicial reform plan by voting for his government in the last Knesset elections, and that his government implements "the will of the people." As for Netanyahu's allies, their statements were full of confidence. Finance Minister Bezalel Smotrich tweeted that “The left has long since become undemocratic and the right is trying to return democracy to Israel,” while National Security Minister Itamar Ben-Gvir said “this is just the beginning,” referring to the rest of the judicial reform draft laws that will be approved at a later stage.
Yair Lapid, the opposition leader and head of the "There is a Future" party, said, "It is a sad day. This is not a victory for the coalition; this is the destruction of Israeli democracy." The head of the "National Camp" party, Benny Gantz, said: "We may have lost a battle, but we will win the war." For his part, former Israeli Prime Minister Ehud Olmert viewed Israel "heading towards a civil war," stressing that there is a serious threat to Israel that has not occurred before.
In terms of Israeli public opinion, the popular protests against Levin's plan, which had been ongoing for 30 weeks, reached a climax on July 24, following the passage of the new law. Demonstrators spread to Tel Aviv, Jerusalem, and some settlements, closed highways, and gathered in thousands near government headquarters and official institutions. On July 25, the Israel Medicine Association, which represents 97% of doctors, called a statewide strike, claiming that its members outside of Jerusalem will only deal with emergencies and critical care requirements.
Given the fact that the government coalition has succeeded in reaching power through a narrow majority, and in light of controversial and extreme right-wing figures being part within the current government, a segment of Israeli public opinion fears that the judicial reform project will usher in a period in which the extremist religious movement will dominate political life. By enacting the bill and the remainder of Levin's plan, the Netanyahu government would be given nearly unlimited authority, with no institutional safeguards for individual rights or the functioning of the Israeli political system. The opposition movement is also concerned that these legal changes may allow Netanyahu to freeze or cancel his ongoing trial on corruption charges. The most worrying aspect however is that strict religious groups will continue to award religious Jews exceptional privileges, such as exemption from military service, while pushing their way of life on the rest of Israel.
Internationally, the White House expressed its displeasure with the passage of the law. "Biden has publicly and privately expressed his views that major changes in a democracy to be enduring must have as broad a consensus as possible," White House Press Secretary Karine Jean-Pierre said in a statement. A number of members of the US Congress likewise made remarks expressing "extreme disappointment" with the passage of the Israeli law. Germany's Foreign Ministry stated that Berlin was following the tensions in Israel with "extreme concern" and that it had urged the Israeli government to take steps that could lead to a compromise on the contentious issue of judicial reform.
Repercussions
The current turbulent situation in Israel may have a lot of repercussions that appear on multiple levels, as follows:
1. Deepening political division:
The current societal split in Israel may have negative consequences for Israel's future, particularly on the level of identity and the structure of the democratic system. These are the elements around which the Israelis have built a "tacit agreement" upon throughout the years. From the opponents' perspective, the most dangerous thing is that this division will grow deeper in light of the continuation of the Netanyahu government, which intends to continue moving with its controversial political and legislative agenda, especially since it knows that its current power is its best opportunity to achieve its goals. Opinion polls show that the present government coalition's chances of regaining power in the forthcoming elections have decreased since the protesters' escalation. The most recent of these polls was conducted on July 25, 2023, for both (N12 News) and (Reshet 13) radio and suggested that Netanyahu's ruling coalition may occupy 52 and 53 seats, respectively, compared to the present 64 seats.
2. Economic losses:
Despite the Israeli economy's resilience in recent years, the uncertainty surrounding the judicial reform process has altered this perception. Last June, Amir Yaron, Governor of the Bank of Israel, attributed the shekel's weakness in the foreign exchange market to domestic events in Israel, which made imports more expensive and so contributed to the recent rise in the cost of living and inflation.
Foreign investment in Israel's high-tech sector fell to its lowest level since 2019 in the first half of this year. Over the past few weeks, 200 high-tech companies have been at the vanguard of anti-judicial reform protests, allowing employees to participate in the strikes. Furthermore, nearly 70% of Israeli start-ups are actively seeking to withdraw funds from the country and transfer some of their businesses abroad. The credit rating agency "Moody's" also published a report warning against investing in Israel the day after the Knesset approved the first judicial reform measure.
3. A military crisis in the reserve forces:
The introduction of the Levin plan alienated many military reservists, some of whom see this step as a seizure of power by ultra-Orthodox Jews, the vast majority of whom do not serve in the army. In July, approximately 11,000 reservists, including hundreds of pilots, indicated their decision to leave the Israeli army in protest against the judicial reform plan, according to the New York Times.
Angry statements were made by the Chief of Staff of the Israeli Army, Herzi Halevi, indicating the need to stop speaking publicly against the Israeli army and its soldiers in the permanent and reserve army. In response to the potential of a large number of reserve force withdrawals, Halevi stated, “If we don’t have a strong and united defence force, if Israel's best do not serve ... we will no longer be able to exist as a country in the region.” This is in reference to the Air Force reserve pilots, around 500 of whom have threatened to leave service in July. The most dangerous aspect is that the reservists' protest issue will spread to the ranks of the regular and permanent armies, as well as candidates for security agencies.
4. External tensions:
According to Israeli think tanks, the judicial reform issue has a certain exterior influence. On one hand, tensions between Washington and Tel Aviv may rise as a result of the US administration's rejection of the Netanyahu government's policies. The new adjustments may also enhance the influence of extremists in the Israeli government, potentially leading to a rise in violence against Palestinians in the West Bank. Similarly, the current crisis, which has affected the readiness of the Israeli army's reserve force, may have a negative impact on the level of alertness regarding regional security threats, which some see as imminent, from Iran and its regional proxies.
Overall, Israel is today undergoing an unprecedented crisis with obviously significant repercussions on all levels. This tumultuous scene may pave the way for discussion of potential changes that Israel may see in the coming years, whether in its political system or in reconstructing the organization of its armed forces to ensure that the "reserve" situation does not reoccur.
