Economists warn against judiciary overhaul in Israel

JERUSALEM

Hundreds of senior economists in Israel have warned of the consequences of the government-initiated judicial reform on the Israeli economy.

On Thursday, the Israeli Broadcasting Authority said the warnings came in a petition, which has been the second signed by economists since the government began introducing the reform legislation.

It noted that among the signatories of the petition were Jacob Frenkel, the former governor of Israel's central bank, and a number of academics including Eugene Kandel, who previously served as economic advisor to Prime Minister Benjamin Netanyahu.

The petition noted that many indicators have accumulated, attesting to the “imminent damage to the economy, which is expected to occur stronger and faster than expected."

"In recent weeks, the first signs of capital flight out of Israel have appeared, which will compel the Bank of Israel to continue raising the value of bank interest at a rapid pace," it read.

"Even if the markets stabilize in the foreseeable future, it is expected that in the longer term, damage will be caused to the path of economic growth and the quality of life for the citizens of Israel," the petition further said.

"The possibility still exists to stop the train to avoid its rush into the abyss," economists said, referring to refraining from approving the draft law.

In the past eight weeks, thousands of Israelis have taken to the streets to protest Netanyahu's plans for judicial overhaul.

Proposed by Justice Minister Yariv Levin, the reform, if enacted, would be the most radical change ever in the system of government in Israel.

The planned change would severely limit the power of the Supreme Court of Justice, give the government the power to choose judges, and end the appointment of legal advisers to ministries by the attorney general.

However, Netanyahu, who is on trial for corruption, insists that his judicial plan would enhance democracy.

*Writing by Mahmoud Barakat in Ankara