Netanyahu Set to Delay Plan as Protests Escalate

(Bloomberg) —

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Israeli Prime Minister Benjamin Netanyahu is set to address the nation after enlisting the support of a key coalition partner to delay a planned weakening of the judiciary following a nationwide strike and street protests by thousands of people.

National Security Minister Itamar Ben Gvir agreed to give Netanyahu more time to approve the plans amid unprecedented opposition that has crippled the economy. The prime minister counted on the far-right support of Ben Gvir to return to power in elections late last year.

Economy Secretary Nir Barkat is among senior officials urging a pause, saying the overhaul is not worth civil war. The proposals have sharply divided Israeli society and groups protesting both for and against the policy are protesting Monday, raising the risk of violence erupting.

Important Developments

• Israel’s strikes shake up economy to halt judicial overhaul

• Night of Rage puts Netanyahu in a tight corner: balance of power

• Israeli markets are rallying on signs of a delay in Netanyahu’s plans

• In pictures: Mass protests erupt in Israel against Supreme Court plan

• The Israeli defense chief calls for a freeze on the judiciary

• Moody’s recently warned of Israel’s credit risk from legal plans

• Why Israel is bitterly divided by judicial reform: QuickTake

(All times CET)

Biden Not Worried About Civil War (6:40 p.m.)

US President Joe Biden “believes that one of the great things about Israel is its strong history of democracy,” National Security Council spokesman John Kirby told reporters. However, the president has “concerns” about the legislation and has shared them directly with Netanyahu, he said.

Netanyahu addresses Israel on Monday evening (6:34 p.m.).

Prime Minister Netanyahu will address the nation shortly after 8 p.m. local time, his office said. He is expected to clarify whether he will formally postpone the judiciary review after winning the support of coalition partner Ben Gvir.

The story goes on

He will speak from his office and not from the Knesset, the country’s parliament in Jerusalem and the scene of mass protests.

Justice reform supporters launch protest (6:06 p.m.)

Thousands of supporters of the government’s plans to reform the judiciary began demonstrating outside the Knesset, urging politicians to push ahead with the controversial legislation. “The people demand legal reform!” they chanted.

They joined thousands of other protesters against the proposals, and the two camps shouted “Democracy!” and “Reforms!” to each other as they marched towards the main buildings.

So far there have been no reports of any serious incidents, although La Familia, a football fan club notorious for racist language and violence, has urged fans to attend.

Coalition partner agrees to delay in planning (5:24 p.m.)

Ben Gvir announced his party had agreed to a one-month delay in implementing the legislation. While the far-right faction originally insisted the government delay the trial by April 4. In return, Ben Gvir will be given command of a national guard tasked with bolstering security.

The compromise could pave the way for a formal postponement despite opposition from some other ministers, none of whom had threatened to leave the coalition.

Finance Minister Urges Supporters to Defend Policy (3:21 p.m.)

Finance Minister Betzalel Smotrich said in a clip that was broadcast that “we cannot allow the reform that increases oversight of the courts and strengthens democracy to be stopped.”

He said he and his supporters were in the majority and urged them to join him in a protest Monday night in the Knesset. “We will not allow them to steal the land,” he said.

Labor leader says delay in planning is not enough (2:42pm)

Labor Party leader Merav Michaeli said the delay in reviewing the judiciary was not enough to warrant dialogue – the policy had to end immediately. While her party has only four seats in the 120-seat Knesset, she is a leader of the left-wing opposition and her stance suggests a difficult road ahead for the government.

Strikes upend economy to halt overhaul (2:37 p.m.)

Israel’s largest workers’ group unleashed one of the most widespread strikes in the country’s history to cripple the economy and pressure Netanyahu to stop a plan to weaken the judiciary.

The airport authority grounded most outbound flights ahead of the busy Passover holiday travel season, while strikes took place at ports, major retailers and Israel’s largest investment fund, FIMI. Bank Hapoalim BM, one of the country’s largest lenders, closed all its branches.

Israel’s US Embassy to Close Due to Call for Strike (2:05 p.m.)

The Israeli embassy in Washington DC said it was closed to all activities, including consular work, after public sector strikes spread across Israel. Spokesman Elad Strohmayer wrote on Twitter that the industrial action involved all diplomatic missions around the world.

Israeli Markets Rally On Signs Of Raids (1:45 p.m.)

Israeli markets rose on signs Netanyahu is considering postponing his plan. The shekel rallied as much as 1.4% against the dollar after erasing earlier losses as stocks rose. The yield on the 10-year local currency government bond fell 11 basis points to 3.82%.

Economics Minister supports plan stop (11:23 a.m.)

Nir Barkat said he will support Netanyahu “in his decision to stop and reconsider,” a statement said. “Reform is necessary and we will carry it out, but not at the cost of civil war.”

He called on all members of the coalition to rally behind the prime minister, adding: “We cannot overthrow a right-wing government with our own hands. Our strength lies in our unity.”

–Assisted by Ethan Bronner, Gwen Ackerman, Marissa Newman and Netty Ismail.

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