Netanyahu Hints at Resuming Discussions on Judicial Reforms

Israeli Prime Minister Benjamin Netanyahu managed to secure a two-year budget on Wednesday and indicated that this could pave the way for the resumption of work on controversial judicial amendments pushed by his ruling national religious coalition. Opposition politicians, who participated in talks aimed at reaching a compromise with the government regarding the proposed amendments since the voting on them was suspended in late March, warned that one of them could cause a "strong shock in Israel" if Netanyahu insisted on moving forward with this legislation unilaterally. The proposal of judicial amendments in January led to unprecedented anti-government protests for months, worrying some foreign investors and credit rating agencies. On Wednesday, the shekel dropped nearly one percent against the dollar, reaching 3.735, its lowest level since March 2020, which analysts considered a result of factors including the possibility of heightened political and economic tensions. Market indices in Tel Aviv also fell by one percent, along with government bond interest rates declining by up to 0.5 percent. Netanyahu and his allies hold a parliamentary majority of 64 out of 120 seats in the Knesset, a comfortable majority that allowed for relatively quick approval of the budget. The Knesset stated that "a spending package totaling 484 billion shekels, or 131 billion dollars for this year, and 514 billion shekels, or 139 billion dollars for next year, was approved in the final reading by a majority of 64 votes to 56."