Israel's Tech Sector Says Judicial Overhaul Could Hurt Economy

Israel's technology sector is pushing back against the new government's planned judicial overhaul, saying the proposed changes are spooking investors worried about economic stability, the independence of the courts and a right-wing legislative agenda. From a report: This week, a large Israeli software company said it would move its money out of Israel and the general partner of two venture-capital firms said future money raised could be kept abroad. Those moves followed a letter from hundreds of Israeli economists warning that the judicial changes would concentrate political power and remove democratic checks and balances in a way that 'could cripple the country's economy.' Two former Bank of Israel governors warned in an opinion column about the negative economic impacts of changes to the top court.

Israeli Prime Minister Benjamin Netanyahu and his recently sworn-in government are advancing plans that would give the ruling coalition control over which judges are appointed, and allow a simple majority of lawmakers to override decisions by the Supreme Court. The plan would also limit which cases the court can hear. Top members of the justice system and the political opposition have criticized the overhaul as an attempt to concentrate all power in the hands of the ruling coalition. Israel is highly reliant on its technology sector, which accounts for 15% of the country's gross domestic product and around half of its exports. The country has prospered in recent decades, attracting foreign investment that has fueled an explosion of startups and technology companies. Many Israeli tech companies are based in or have workers who live in the Tel Aviv area, a base for secular and liberal Israelis, many of whom oppose Mr. Netanyahu's government.

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