The US investment bank Citi stated that the events in Israel created a difficult and dangerous situation for the economy and that investors were increasingly worried about Israeli assets, and that it was necessary to be careful until the markets calmed down.
Israel fell into great chaos when the coalition government led by Prime Minister Benjamin Netanyahu passed one of the key bills under the controversial “judicial reform”. Judicial reform includes clauses that will limit the Supreme Court’s control over the executive, and this brings controversy and uncertainty.
On the judicial reform, Citi said in a note, “The clause to limit the Supreme Court’s control over the executive passed without compromise – now what? – Nobody knows.” statement was included.
Citi economists point out that the government now has the power to ignore Supreme Court decisions, and this situation has become much more complex and dangerous.
