Posted on 07/27/23
| News Source: Arutz-7
The credit rating company S&P published a special report on Israel's economy in which it states that the changes in the Israeli legal system endanger the country's economy.
The agency complimented the strong Israeli economy, but warned against the consequences of the changes promoted by the government in the legal system: "In the short term, we anticipate that the political uncertainty, together with weak economic performance by Israel's allies in Europe and the United States, will reduce economic growth in Israel in the next two years."
Earlier this week, the credit rating agency Moody's published a report on Israel in which it was stated that "the risk of a constitutional crisis is increasing, and the data are worrying."
"The comprehensive nature of the government's plans may significantly weaken the independence of the judicial system and disrupt the effective checks and balances between the various authorities. Some of our earlier concerns regarding the effects of the reform on Israel's economy are beginning to materialize. There are signs that Israel is disconnecting from global trends in the technology industry," the document says.
Finance Minister Bezalel Smotrich responded, "When you look beyond the headlines in the media, you see that S&P, like Moody's, does not recommend lowering the credit rating and does not warn of damage to the economy due to the legal reform, but because of the protest that creates instability. Meanwhile, Moshe Radman, one of the leaders of the protest, also openly declares their intention to damage the economy. The opposition must condemn elements like him who are harming the State of Israel, and reach a real dialogue in order to lead to joint agreements and together to fix the essential things in the legal system and strengthen the Israeli economy."