Israeli lawmakers have taken a first step toward approving a controversial plan that would hand the government more power over the country’s top court, a move that’s sparked waves of protest.
In a first-round vote early Tuesday, members of parliament voted in favor of a proposal put forward by Prime Minister Benjamin Netanyahu’s new ruling coalition to reform the judiciary. It will still need to pass through two more votes before becoming final.
“Last night’s vote has unfortunately set the course for a complete overhaul of Israel’s judicial system and the concentration of all political power in the hands of our executive branch,” said Yohanan Plesner, president of the Israel Democracy Institute.
The push has caused a deep political rift within Israel and brought tens of thousands of protesters onto the streets, while also unnerving markets and some international investors. Proponents say the changes are needed to balance a legal system they say is biased.
Israel’s shekel extended a recent slide Tuesday, falling to its weakest since April 2020. Central bank Deputy Governor Andrew Abir said “political uncertainty” in Israel has affected the exchange rate and equity markets.
The vote followed a fraught parliamentary debate during which some opposition lawmakers were removed from the hall. Others boycotted entirely.
“Coalition members, history will judge you for the damage to democracy, for the damage to the economy, for the damage to security, for the fact that you are tearing the people of Israel apart and you simply do not care,” former Prime Minister Yair Lapid tweeted.
Demonstrators, who have been gathering on Israel’s streets for weeks over the planned changes, intensified their opposition on Monday by trying to block coalition parliament members from leaving their homes. Netanyahu came back to power after elections last year by forming a pact with far right, ultra-Orthodox and nationalist parties.
The changes were approved 63 to 47, and if they go through in a final vote, it will give lawmakers more powers to appoint judges and limit the Supreme Court’s authority to strike down laws.
The proposals will now go back to the law committee for further review before being brought back to the plenum.
Opponents say the overhaul will weaken the political system’s checks and balances and make Israel a less appealing place to invest, increasing the influence of religious fundamentalists.
Those pushing for change argue the court has, over the past three decades, assumed too much power, declaring itself a constitutional forum even though Israel has no constitution, and playing a dominant role in selecting those who sit on the bench.
President Isaac Herzog has called on politicians to find a compromise. Last week he warned of “constitutional and social collapse” if officials didn’t work to address the dissent triggered by the proposals.
The coalition has said it is willing to hold a dialog while simultaneously pushing the changes forward in the Knesset. The opposition says they will talk only if the parliamentary process is halted.
“What’s needed now is not a compromise that ‘splits the difference’ on the plan, but a complete change in direction that takes this judicial crisis and turns it into a constitutional moment based on broad consensus throughout Israeli society,” said Plesner.
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(Bloomberg News reporter Alisa Odenheimer contributed to this story.)
