Israeli prime minister Benjamin Netanyahu announced on Monday a softening of his judicial overhaul plan, an apparent bid to calm more than two months of nationwide protests and misgivings voiced by Western allies.
The announcement came after President Joe Biden called for compromise and consensus in the constitutional crisis. It was scorned by the center-left political opposition and stepped-up demonstrations loomed.
The already-shaken shekel slipped 0.4% versus the dollar. Tel Aviv shares were 0.3% lower. Some lawmakers in Netanyahu's coalition cast the revisions as capitulation. With a parliamentary majority, Netanyahu had looked poised to ratify the package of reforms by the Knesset s recess on April 2. He and partners in the religious-nationalist coalition said that most of the will be put on hold until it reconvenes on April 30, but most will be shelved.
The legislation that is due to be ratified in the next two weeks would shake up Israel's method of selecting judges, an issue that has been the subject of controversy, with critics accusing Netanyahu of trying to curb the independence of the courts.
The veteran premier, under trial on corruption charges he denies, insists he seeks balance among branches of government.
In Sunday s phone conversation, Biden said he would support a compromise on the judicial overhaul and encourage checks and balances and build broad agreement, according to the White House.
According to the prime minister's office, Netanyahu reassured the U.S. president of the health of Israeli democracy.
Monday s coalition statement used more circumspect language than in the original bill introduced on Jan. 4, but said it would continue to look at the power of judges on the selection panel to use what it deems their veto over nominations to the bench.
The amendments made to the bill during a Knesset review session on Sunday, whereby the selection panel would be expanded from 9 to 11 members as originally planned, but with a make-up that gives the government less potential clout.
The bill envisaged a panel consisting of three cabinet ministers, two coalition lawmakers and two public figures chosen by the government - spelling a 7 -- 4 majority.
The bill envisages the panel consisting of three cabinet ministers, three coalition lawmakers, three judges and two opposition lawmakers. It could make for a slimmer and less assured 6 -- 5 majority for the government.
The bill states that no more than two Supreme Court justices can be appointed by regular panel voting in a given Knesset session. Any appointments beyond that must be approved by a majority vote, including at least one judge and one opposition lawmaker among the selection panel members.
The coalition statement said it was extending a hand to anyone who cares about national unity and the desire to reach an agreed accord. Yair Lapid, the leader of the Opposition, rejected the overture, saying nothing substantive had changed.
Lapid said on Twitter that this most recent coalition proposal is a blueprint for a hostile takeover of the justice system.
The Black Flags activist group said demonstrations that have already shaken the country and reached into its normally apolitical military would be intensified. Tally Gotliv, a Democrat in his conservative Likud party, told Ynet Radio that Netanyahu had tried to put the protest to sleep with pretty words.