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By Steven Scheer
JERUSALEM (Reuters) – Israeli President Isaac Herzog said Monday a compromise in the government’s judicial overhaul plan could be imminent, which would send financial markets sharply higher, although there were no immediate signs of an agreement between the government and the opposition.
Anti-reform protests continued to spread, with local media circulating a letter from 10 former air force chiefs to Prime Minister Benjamin Netanyahu warning of the “serious and palpable” threat posed by the judiciary overhaul plan, a day after the reservists declared , they would not turn back to practice in protest.
Though president is a ceremonial office, Herzog has called 100 government leaders to an emergency meeting to find a solution to proposals that have divided the country and sparked nationwide protests.
“We are closer than ever to the possibility of an agreed draft. Most things have behind-the-scenes agreements,” Herzog said in a statement, without giving details.
He said it would now be up to the leaders of the ruling coalition and opposition to “put the country and the people above everything else” and implement it, adding that his plan was working to appease both sides.
Opposition leaders Yair Lapid and Benny Gantz issued a joint statement in response, praising the president’s efforts to reach a compromise but demanding that Netanyahu halt the legislative process to allow for “honest and effective dialogue.”
“Israel is on the brink of a national emergency – and Netanyahu refuses to stop,” they wrote on Twitter.
Netanyahu did not immediately respond to Herzog’s efforts.
Herzog presented a compromise plan last month to spare the country what he called a “constitutional collapse.”
The judiciary overhaul plan, which has already received initial parliamentary approval, would give the government more leverage over judge selection and limit the Supreme Court’s power to strike down laws.
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Critics of the planned legislative changes say Netanyahu – who is on trial for bribery he denies – is taking steps that violate Israel’s democratic controls, enable corruption and bring diplomatic isolation.
Proponents say the changes are necessary to curb what they believe is an activist judiciary meddling in politics.
Lapid has called for compromise talks and a 60-day freeze on legislation, but Netanyahu said he would only agree to negotiations without preconditions.
Since the proposals were unveiled in late January, the shekel has plummeted against the dollar, alarming investors who fear Israel could join the growing list of emerging economies adopting a more authoritarian stance on decision-making.
As of last week, the shekel had fallen almost 10% against the US currency in just one month, to trade at a three-year low.
Optimism over a compromise pushed the shekel up 2% to 3.59 per dollar on Monday, its strongest since February 21. Similarly, Tel Aviv stock indices rose 1.5% and government bond prices also rose nearly 1%.
(Reporting by Steven Scheer; Editing by Angus MacSwan and Christina Fincher)
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