10 | FEBRUARY 9 • 2023 

I

srael is currently in the 
midst of an intense public 
debate as to whether judi-
cial reforms proposed by the 
new government will violate 
the separation 
of powers.
Let us take a 
basic look at the 
proposals, as 
they currently 
stand:
1. Judicial 
Appointments 
Committee. Israel’s Judicial 
Appointments Committee, 
which chooses Supreme 
Court justices, has nine mem-
bers: Three Supreme Court 
justices, four politicians — 
one of whom is the justice 
minister — and two repre-
sentatives of the Israel Bar 
Association. A majority of at 
least seven votes is required 

to approve an appointment.
Under this system, there is 
a tendency for the Supreme 
Court to be self-perpetuating. 
In other words, the majority 
tends to favor justices much 
like their predecessors. Some 
believe this creates an atmo-
sphere of uniformity and 
continuity. Others say that it 
harms democracy and denies 
voters meaningful input into 

who is chosen to sit on the 
Supreme Court.
The attorney general of 
the current government is 
seeking to replace the two Bar 
Association representatives 
with politicians, one of them 
a member of the government, 
the other a regular Knesset 
member. This would be much 
more like the American sys-
tem, in which the president 

nominates a justice, and the 
Senate confirms them or not. 
In America, the legislative 
branch has a lot to say about 
who will serve on the U.S. 
Supreme Court. Moreover, in 
many American states, judges 
and justices are elected.
2. Override Clause. Under 
the proposed plan, a major-
ity of 61 Knesset members 
could prevent the Israeli 
Supreme Court from hear-
ing appeals against Basic 
Laws. Since Israel does not 
have the equivalent of the 
U.S. Constitution, it has 
Basic Laws that can be quite 
detailed in terms of rights 
and responsibilities. This 
reform would enable the gov-
erning coalition to override 
the Supreme Court majority. 
The only case in which a law 
would be immune to override 

PURELY COMMENTARY

Cliff Rieders
JNS.org

point/counterpoint
Judicial Reforms are Needed in Israel

T

he Israeli government 
is currently engaged 
in preparing a broad 
and ambitious 
“reform” of its 
judicial system. 
This article 
arises from our 
deep concern 
with regard to 
the economic 
ramifications 
and the risks 
inherent in 
the proposed 
reforms.
We are not 
legal experts, 
nor are we 
active in any 
political body. 
Our position is purely 

professional and is based on 
our many years of experience 
in tackling challenges to the 
Israeli economy, along with 
our significant experience 
and intimate knowledge of 
how international financial 
bodies and institutions 
operate.
In the modern world, 
economic growth and 
prosperity require stability, a 
legal system that guarantees 
property rights, compliance 
with budget legislation, 
respect for the central 
bank law, enforcement 
of regulations promoting 
competition, and clear and 
stable rules of the game that 
enable and facilitate the 
development of a long-term 

planning horizon.
This creates a favorable 
environment for economic 
development and especially 
for innovation and 
excellence. 
In recent years, the 
performance of the Israeli 
economy has been especially 
impressive, due in part to 
an unprecedented volume 
of foreign investments in 
the Israeli hi-tech industry. 
However, the economic 
environment has changed, 
and the global slowdown and 
decline in available capital 
are already leaving their 
mark on the Israeli economy.
A debilitation of the 
judicial system — which 
might reduce foreign 

investors’ interest in 
Israel and lead to higher 
borrowing costs for the 
Israeli government as a result 
of a cut in the country’s 
credit rating — could deliver 
a serious blow to Israel’s 
economy.
In this context, we should 
pay close attention to the 
statement by a representative 
of Standard & Poor’s that 
appeared recently in the 
Israeli press: “A consistent 
tendency to weaken key 
and essential institutions 
or the system of checks and 
balances is liable to increase 
the risk of a reduction of 
Israel’s credit rating.” 
With this in mind, we must 
not endanger Israel’s credit 

Proposed Reforms Risk Israel’s Economy

Jacob Frenkel 
Jerusalem 
Post

 Karnit Flug 
Jerusalem 
Post

