The axis of opposition to the legal reform is getting stronger:
50 former CEOs of economic government ministries published a position paper today (Monday) against the plan of Prime Minister Benjamin Netanyahu and Minister of Justice Yariv Levin.
Among the CEOs are those who worked in the Netanyahu governments over the years.
Justice Minister Yariv Levin presents his revolution in the judicial system // Photo: Knesset Channel
"There is a serious concern that the weakening of the judicial system will lead to long-term damage to the growth trajectory of the economy and the quality of life of the residents of Israel," they wrote.
According to the signatories of the letter, the appreciation and stability enjoyed by the Israeli economy is due, among other things, to the independence of the judiciary and the public service, and harming them and lowering their quality will lead to damage to the Israeli economy, a lowering of the credit rating, and difficulties in raising capital in the high-tech industry.
The signatories state that: "Research shows that damage to the quality of government institutions is almost irreversible. An institutional balance that supports growth is delicate, and a deviation from it could be long-term, since harmful political and economic institutions tend to perpetuate themselves over many decades."
They warn of damage to growth and quality of life.
Shaul Meridor and Karen Turner (archive), photo: Gideon Markovitch
The letter was signed by, among others, Keren Turner, Director General of the Ministry of Transportation and the former Ministry of Finance; Uri Yogev, Head of the Budget Division and former Director of the Companies Authority; Attorney Michal Halperin, former Commissioner for Competition;
Yarom Ariab, former Director General of the Ministry of Finance; Dorit Salinger, former Commissioner of the Capital Market; Eli Younes, former Accountant General at the Treasury; Shaul Meridor, former Head of the Budget Division at the Treasury and Director General of the Ministry of Energy, Roni Hezekiah, Accountant General and former Supervisor of Banks, and more many.
"We, former senior officials in the public service who served in positions at the level of CEO in the economic ministries, express our deep concern in view of the government's moves that are expected to harm the independence of the judicial system and the public service, and which in our estimation will cause unprecedented damage to the Israeli economy," the former officials wrote.
"The Israeli economy is highly regarded by the institutions and international economic rating bodies. This assessment was achieved thanks to a long and continuous effort by governments on both sides of the political barrier, and is due, among other things, to the independence of the judiciary and the public service. This assessment and the trust that accompanies it are essential to the functioning and prosperity of the Israeli economy, which is Small and open that maintains a reciprocal relationship with the largest economies in the world.
"The damage to the independence of the judiciary will greatly increase the likelihood of damage to the credit rating of the Israeli government, and to the capital raising of Israeli companies. For example, the surprising downgrade of the credit rating of Poland's government bonds in January 2016 by the rating agency S&P was justified by the damage to the independence of the Constitutional Court and public broadcasting" .
"The damage to the ability of the government and companies in the business sector to raise sources of financing will lead to a decrease in the scope of investments, and this will harm first and foremost the Israeli high-tech industry, the engine of the economy's growth," the authors of the document claim, "this damage is expected to intensify in light of the emerging crisis in the industry, and the possibility that high-tech companies will relocate their centers outside the country's borders. Moreover, the combination between damage to the high-tech industry and damage to individual rights due to the weakening of the justice system is also expected to lead to a phenomenon of 'brain drain' - migration that has consequences for the economic resilience of the State of Israel. Beyond the immediate effects of the government's moves, there is There is a serious concern that the weakening of the judicial system will lead to long-term damage to the growth trajectory of the economy and the quality of life of the residents of Israel."
The former officials conclude: "Therefore, we strongly warn against the current initiatives of the coalition, which mean a fundamental change of the system of the regime in Israel and a danger to the future of the Israeli economy."
The letter was added to the warning letter of more than 300 economists published last week, warning of the possible consequences of the implementation of the law reform.
were we wrong
We will fix it!
If you found an error in the article, we would appreciate it if you shared it with us
