Israel Faces Showdown Between Judges and Government Over New Law

Israel’s Supreme Court took the unprecedented step of assigning all 15 of its justices to an appeal against a new law limiting their power, a sign of how important the case is amid an ongoing governmental crisis.

(Bloomberg) — Israel’s Supreme Court took the unprecedented step of assigning all 15 of its justices to an appeal against a new law limiting their power, a sign of how important the case is amid an ongoing governmental crisis.

The parliament, or Knesset, passed a basic law last week that prevents judges from voiding government decisions they deem “unreasonable.” The move, championed by Prime Minister Benjamin Netanyahu and his right-wing coalition, was highly controversial and Israelis have held massive protests for months. Investors sold off the bonds and the shekel, while US President Joe Biden criticized the government for acting without building a consensus.

The Knesset is on recess until October. Israeli financial assets have stabilized, with the shekel paring some of its losses and is up 2.3% in the past three days to 3.64 per dollar.

Flash Point

Still the anti-government protest movement has promised more big demonstrations in coming weeks. And the appeal could be a flash point.

Netanyahu’s Likud Party reacted to the court’s announcement that all judges will hear it next month by saying the organization needs “to respect the basic laws.”

On NBC News on Monday, the prime minister declined to say he will definitely accept the decision of the court, which could annul last week’s law, limit its use or say it can stand.

His comments were seen by some lawmakers as an implicit threat to the court.

“The hint is clear and violent,” said opposition leader Yair Lapid, who was prime minister until Netanyahu succeeded him last last year.

Labor Party leader Merav Michaeli accused Likud of trying “to threaten judges and intimidate them before the hearing on the petition.”

Broader Overhaul

Israel has no written constitution. Its so-called basic laws have quasi-constitutional status and the court has never overruled one before. But two years ago, while examining a different basic law, it said it might do so if any legislation violated Israel’s Jewish or democratic character. 

The government has indicated that the reasonableness law may be just the first step of a broader judicial overhaul. Other moves being mulled include giving politicians more say in selecting judges.

The court, which will hear the case against reasonableness on Sept. 12, is considered by the right to be a bastion of liberalism. However, several of its justices are religious and conservative. By assigning the entire group to the case rather than a normal panel of three, Supreme Court President Esther Hayut is aiming at the broadest possible basis for the ruling.

Suzie Navot, a professor of constitutional law and vice president at the Israel Democracy Institute, said that if the court does overturn the law and the government refuses to abide by the ruling, it would amount to a true crisis, something she considers unimaginable. 

“When the Likud claims that the high court is not authorized to intervene in basic laws, the meaning is that the Knesset has absolute power, and absolute power does not go with a democratic system,” she said. 

In his US television interview, Netanyahu said he hopes the justices would not strike down the new law.

“I think we have to abide by two rules,” he said. “One is, Israeli governments abide by the decisions of the Supreme Court. And at the same time, the Supreme Court respects the basic laws which are the closest thing we have to a constitution. I think we should keep both principles, and I hope we do.”

–With assistance from Gwen Ackerman.

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