April 1, 2023

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Leading Investment Companies Warn of Uncertainties due to Judicial Overhaul

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On Sunday, a letter was published by a group of top investment firms in Israel, which manage hundreds of billions of shekels in pension funds and public funds.

The companies shared their concerns about the uncertainties in the financial markets caused by the planned judicial overhaul of the government.

Compromise

The heads of the companies reiterated the message of President Isaac Herzog of holding compromise talks on the matter.

The Israel Investment Houses Association published the letter, which represents the investment houses that are Israel’s leading institutional investors.

It said that these companies manage the public’s money worth billions of dollars due to which they saw it as their duty to highlight the importance of the parties entering into honest, serious and immediate negotiations.

They addressed the letter to the leader of the opposition, Yair Lapid and Yariv Levin, the Justice Minister, who had put forward the proposals.

The letter stated that investment houses were concerned about the consequences on public savings and the financial markets because of the uncertainties.

The investment firms called on all leadership and parties to show some responsibility that would help in maintaining the economic and social conditions and stability that have helped Israel’s economy record impressive growth in the last two decades.

Some of those who signed the letter in question were the heads of Epsilon, Phoenix, Psagot, Yelin Lapidot, IBI, Altshuler Shaham, Meitav and more.

The overhaul

The judicial overhaul proposals have been backed by Benjamin Netanyahu, the Prime Minister, and advanced by the Justice Minister, Yariv Levin.

These proposals are meant to limit the power of the High Court when it comes to striking down laws and give the government complete control in appointing judges.

They will empower the Knesset to pass any law, as long as they are able to secure the support of 61 MKs.

According to critics, when combined with the legislation planned, these reforms would undermine the democracy in Israel because the system of checks and balances would be upset.

This is because they are aimed at granting most of the power to the executive branch, which means that the rights of minorities and individuals would be left undefended and unprotected.

The dismissal

However, Benjamin Netanyahu as well as other members of the coalition have been dismissive of the criticism.

A protest movement has been organized against the judicial overhaul and Monday has been declared as day of struggle.

The protestors will rally outside the Knesset for the second consecutive week and demonstrations will also be held in other cities, which means some businesses will remain closed.

The demonstration will be held outside the Knesset, as the first reading of the legislation aimed at giving the government control over the judges’ appointment is scheduled on Monday.

A bill will also be presented for preventing judicial oversight of Basic Laws and there will also be discussions taking place about the other areas of the overhaul package on Monday in the Knesset’s session.

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