HSBC warns Netanyahu’s judicial overhaul will harm Israel's economy
The leading European bank echoed last week's warnings by JPMorgan over the negative effects the judicial reforms pushed by the current Israel government could have on the country’s economy.
A report by the British bank HSBC published Monday estimates that the judicial reforms currently being pushed in Israel could negatively affect foreign investments in Israel’s economy. The planned reforms by Prime Minister Benjamin Netanyahu's government would limit the power of the Supreme Court to cancel Knesset legislation it finds in violation of Israeli law. It would also offer the government more leverage over the selection of judges and justices.
The report notes that the Israeli shekel is strong and that foreign investments in the Israeli market and in Israeli companies in the past few years have contributed to its attractiveness. Since 2019, thanks to the strength of the Israeli economy, foreign investment in Israeli bonds has increased.
