Israel’s Democracy is Under Siege: Never Underestimate Change in the Long Term

I fear for the future of Israel.

Israel has come far in establishing a strong, modern democracy and thriving economy. Throughout the years it beautifully managed multiple regime changes between right, left and center and many other tests to its fabric. One of the elements that provided that strong foundation is an independent Supreme Court, a strong beacon of morality that since the inception of the country about 75 years ago has kept any government honest, acting as a consistent counterbalance to the changing moods and whims of the public and the various governments.

As a proud Israeli, when talking to investors all over the world, governments, central banks, clients and otherwise, I always stressed the thriving technology industry, the entrepreneurship and innovation culture, the great education system, the democracy, and the Supreme Court. Always the Supreme Court.

On Dec. 29, 2022, Benjamin Netanyahu took office as?Prime Minister of Israel?for the sixth time. The new ruling majority is the furthest right-wing government coalition in Israel’s history. They immediately tried to fast-track a “legal system reform” that revolves around the Supreme Court, which is under fire and the vitriol coming from the new regime is terrifying. Netanyahu’s coalition wants to take power away from the Supreme Court and put it in the hands of politicians, allowing a simple majority parliament (61 votes out of the 120 seats) to veto ANY ruling (past or present) from the Supreme Court.

And it hardly stops there. The coalition wants to eliminate the reasonableness standard , which allows the courts to invalidate political appointments of people deemed unfit, such as those who have been previously committed of crimes; strengthen the power of the governing coalition on the Judicial Appointments Committee so that coalition has a majority; and weaken the status of the legal advisers at the government ministries.

Israel is a democracy without a constitution and with one parliamentary body. The Supreme Court is the singular balancing institution. These changes will hand over materially unchecked and unlimited power to the ruling party. And the level of rhetoric and attacks against the Supreme Court at its Justices is appalling, and unprecedented. Things that were never done before and never said, but for marginal members of the Israeli society are becoming commonplace.

Decades of work to build Israel’s young democracy into a modern society where diversity, equality and inclusion are valued stand to be washed away. I’m in disbelief. If any of this comes close to reality, this could be the beginning of a true catastrophe for Israel, sad and unnecessary. Israel has gone through a lot in its 75 years of existence, but this dangerous rhetoric is one of the worst threats to its democracy and long-term well-being. The effect on demographics, investment in the country from outside and in, the level of trust and confidence in it by foreign nations will be severely compromised.

The good news – there has been action. Tens of thousands have been protesting these latest threats to democracy. I stand with them. My expectation is that a compromise will be reached. In the end, I hope the government and new coalition will listen to the pressure from inside and out and will reach some agreement to a joint effort to examine the system and offer improvements that no doubt every system can find.

But the seeds of long-term erosion have been planted. Language that used to be reserved for extremists has now become mainstream and is used by leaders, our prime minister, and a growing population in the public. The expansion of the legitimacy of what can be said, desensitizing extreme views into the legitimate discourse, is scary.

It is in this moment I am reminded of a Bill Gates quote:

“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction.”?

Prime minister Netanyahu is trying to play down the effect of these measures, saying investors will not back down, companies will not move their funds away from Israel, and the tech industry (and others) will not leave the country. That might very well be true over the immediate term, but the long-term effect can be severe.

I call upon Benjamin Netanyahu, his government, and other public leaders to reduce dramatically the level of rhetoric and pitting the public against the Supreme Court and its Justices. Let’s recognize this exceptional pillar in our strong democracy, one of the cornerstones that allowed us to get to where we are. The Israeli Supreme Court is not this nation’s enemy—it is a huge part of its foundation and future. It’s not about left or right. It is simply about what is right.

For the last 25 years I have been an Israeli tech entrepreneur and always had engineering and development centers in Israel, employing hundreds of people. We paid our corporate taxes, our people pay taxes, we brought hundreds of institutions to Israel and raised hundreds of millions of dollars. A little over a decade ago I worked with the Finance Ministry on building the pitch for Israel to bring international banks to build development centers in Israel, which I am thrilled to see is happening with great success.

At Capitolis we have a development office in Tel Aviv comprised of an exceptional, world-class team creating magic every day. Unfortunately, I share the same fear as other companies do, which includes the wellbeing of my team and concern that the new political leadership will have a lasting negative impact on the ability to do business in Israel . And this goes way beyond business – it is about the destruction of foundational beliefs; the erosion and destruction of democracy to my birthplace country.

April 25-26 is Yom Ha’atzmaut, where Israel will celebrate 75 years of independence, and we’re currently at an inflection point in our country’s history. I am here to fight for Israel and stand united with my brothers and sisters. It is our responsibility to act, and lift our voices every day saying “enough is enough.”?