Moody's: Judicial Reform Points To Continued Political/Social Tension

Moody's has released a report stating that, "passage of first stage of Israel's judicial overhaul points to continued political and social tensions."

• The report continues: "A significant risk that political and social tensions over the issue will continue, with negative consequences for Israel's economy and security situation..."
• "The wide-ranging nature of the government's proposals could materially weaken the judiciary's independence."
• "The executive and legislative institutions have become less predictable and more willing to create significant risks."
• Israeli Prime Minister Benjamin Netanyahu issued comments ahead of the report downplaying economic concerns: "Israel's economy has strong foundations and will continue to grow."
• In a joint statement with Finance Minister Bezalel Smotrich, Netanyahu said: "This is just a momentary reaction, when the dust settles it will become clear that Israel's economy is very strong."
• Widespread protests are expected to continue in the coming weeks. The NYT notes: "The country’s main union is still weighing whether to hold a general strike. Hundreds of leaders from Israel’s vaunted high-tech industry say they’re considering moving their businesses abroad. And thousands of military reservists have said they will stop turning up for volunteer service."