Protests rage as Israel passes contested curbs on some Supreme Court powers (Update)

Israel’s parliament on Monday ratified the first bill of a judicial overhaul sought by Prime Minister Benjamin Netanyahu, after last-gasp compromise efforts collapsed and failed to ease a constitutional crisis convulsing the country for months.

The amendment limiting the Supreme Court’s powers to void some government decisions if it deemed them “unreasonable” passed by 64-to-0 vote after opposition lawmakers abandoned the session in protest, some of them shouting: “For shame!”

Demonstrations against the amendment began early in the day with police dragging away protesters who had chained themselves to posts and blocked the road outside parliament.

By evening, protesters had taken to the streets of cities across the country.

The amendment is part of broader judicial changes the government announced in January, soon after it was sworn in, setting off months of unprecedented nationwide protests and stirring concern among allies abroad for Israel’s democratic health.

More deadlock loomed, however.

Within minutes of the vote, a political watchdog group and the centrist opposition leader said they would appeal against the law at the Supreme Court.

Thousands of protesters who had converged on Jerusalem flooded a highway near parliament, scuffling with police who cleared the road by dragging them across the asphalt and using water cannons, including one that sprayed a foul-smelling substance.

The crisis has caused a deep divide in Israeli society and has seeped into the military, with protest leaders saying thousands of volunteer reservists would not report for duty if the government continues with the plans and former top brass warning that Israel’s war-readiness could be at risk.

Justice Minister Yariv Levin, an architect of the reforms package cast by Netanyahu as needed to create more balance among branches of government, sounded undeterred.

“We took the first step in the historic, important process of fixing the justice system and restoring powers that were taken from the government and the Knesset (parliament),” he said in a speech, seemingly ignoring repeated calls from Washington for a compromise.

After the law passed, the White House urged Israel’s leaders to work toward a consensus through political dialogue.

“It is unfortunate that the vote today took place with the slimmest possible majority,” said spokesperson Karine Jean-Pierre.

ECONOMIC BACKLASH

The turmoil also weighed on the economy. Tel Aviv’s main share indices tumbled as much as 2.5% after the vote in Knesset and the shekel extended losses against the dollar to around 1%. The head of the Histadrut labour federation, after failing to mediate a compromise between the religious-nationalist coalition and opposition parties, threatened to declare a general strike if the government pursued “unilateral” measures.

Netanyahu’s coalition has been determined to push back against what it describes as overreach by a Supreme Court that it says has become too politically interventionist.

Critics say Monday’s amendment has been rushed through parliament and will open the door to abuses of power by removing one of the few effective checks on the executive’s authority in a country without a formal written constitution.

“This government can win the battle, but not the war,” said opposition leader Yair Lapid.

A forum of some 150 of Israel’s largest companies went on strike and Azrieli AZRG.TA and Big BIG.TA, two of Israel’s largest malls, said stores in their shopping centres would remain closed.