Global credit ratings agencies are punishing Prime Minister Benjamin Netanyahu for pushing through the first and most moderate of his judicial reforms, downgrading the country’s outlook due to high political tensions.
The Times of Israel reported:
Credit rating agency Moody’s Investors Service on Tuesday warned about “negative consequences” and “significant risk” for Israel’s economy and security situation following the passage of the first bill of the government’s contested judicial overhaul.
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US investment bank Morgan Stanley on Tuesday lowered Israel’s sovereign credit to a “dislike stance,” citing “increased uncertainty about the economic outlook in the coming months.”
In a note, US bank Citi told institutional clients that the environment in Israel is “much more tricky and dangerous,” after the government passed a bill blocking courts from exercising judicial review over the “reasonableness” of its decisions, counseling investors to hold off until the dust settles.
In April, Moody’s downgraded its outlook for Israel from “positive” to “stable.” International investors have echoed criticism from Israel’s high-tech and financial sectors, which lean left politically, against the reforms.
Some supporters of the reforms argue that Israel’s judicial status quo, which gives the courts and individual judges great power, created more uncertainty for investors, and reforms could stabilize the investment climate.
Netanyahu has reached out to the opposition to negotiate on future reforms; his overture has been rejected.
Joel B. Pollak is Senior Editor-at-Large at Breitbart News and the host of Breitbart News Sunday on Sirius XM Patriot on Sunday evenings from 7 p.m. to 10 p.m. ET (4 p.m. to 7 p.m. PT). He is the author of the recent e-book, Neither Free nor Fair: The 2020 U.S. Presidential Election. His recent book, RED NOVEMBER, tells the story of the 2020 Democratic presidential primary from a conservative perspective. He is a winner of the 2018 Robert Novak Journalism Alumni Fellowship. Follow him on Twitter at @joelpollak.
