Israel Tensions Soar as Anti-Government Unrest Moves to Army

Tens of thousands are protesting over the Israeli government’s move to scale back the Supreme Court’s power, escalating tensions over a plan that’s sparked the biggest unrest in decades and seen army reservists threatening to withhold service.

(Bloomberg) —

Tens of thousands are protesting over the Israeli government’s move to scale back the Supreme Court’s power, escalating tensions over a plan that’s sparked the biggest unrest in decades and seen army reservists threatening to withhold service.

The chief of the army expressed alarm over the warning from soldiers, while US Defense Secretary Lloyd Austin will meet his counterpart Yoav Gallant in a shortened visit near the airport rather than in central Tel Aviv to avoid the unrest, the Israeli defense ministry said.

There may be demonstrations in 20 cities across the country Thursday, according to plans released by organizers. Last week, confrontations between police and protesters turned violent in several areas. Water cannons were visible at several major junctions.

The upheaval has been building since Prime Minister Benjamin Netanyahu’s new right-wing coalition proposed handing the final say on the appointment of new judges to lawmakers and giving parliament the power to overrule high-court decisions. Opponents — mainly secular professionals as opposed to more traditional, religious Jews — see it as a threat to the Middle East’s most developed economy and democracy.

The shekel strengthened slightly by 11.44 a.m. in Tel Aviv, though has weakened 2.5% this year in part due to the unrest. There are reports investors are starting to move money out of the country, while Moody’s Investors Service joined other major credit assessors in warning of risks to Israel’s debt rating.

Netanyahu met Wednesday with President Isaac Herzog, who is seeking a compromise over the judicial overhaul. Demonstrators are taking to the streets twice a week.

“Certain cracks can form that will be irreparable in the future,” Herzi Halevi, head of the Israel Defense Forces, said after a meeting with reservist commanders. “Refusal is a red line, it should not be in the military protocol. It is unacceptable to discuss refusal, it is unacceptable to act on refusal.”

West Bank

The surge of domestic unrest has been accompanied by increased tensions in the West Bank. On Thursday, Israeli commandos operating near the city of Jenin sought to arrest what the army said was a cell of terrorists. The Palestinian health ministry said three were killed.

Some 78 Palestinians have been killed by Israeli forces since the start of the year, the most for that period since 2000, according to the Palestinian health ministry. At the same time, 14 Israelis were killed in the West Bank, also the most in some two decades, according to the Israeli foreign ministry.

–With assistance from Gwen Ackerman.

(Updates with shekel in fifth paragraph.)

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