Judicial reform: Bank of Israel gov. warns Netanyahu of economic risks

PM Netanyahu met with Bank of Israel Governor Yaron amid multiple warnings that the judicial reform will harm Israel economically.

Bank of Israel Governor Prof. Amir Yaron presents the central bank’s Annual Report for 2020 to Prime Minister Benjamin Netanyahu on April 6. (photo credit: AMOS BEN-GERSHOM/GPO)
Bank of Israel Governor Prof. Amir Yaron presents the central bank’s Annual Report for 2020 to Prime Minister Benjamin Netanyahu on April 6.
(photo credit: AMOS BEN-GERSHOM/GPO)

Bank of Israel Governor Prof. Amir Yaron warned Prime Minister Benjamin Netanyahu against the planned judicial reform in a meeting between the two in the prime minister's office on Tuesday.

According to Walla, in the meeting, the governor warned Netanyahu of harming Israel's credit score as a result of the judicial reform.

"The world is worriedly following the developments that may distance international companies from investing in the country," he said.

Yaron referred to the challenges facing Israel's economy in his review, both locally and from an international perspective. He also made clear to the prime minister the various issues that arose in the Israeli context in the discussions he had with the senior officials of the global economy, as well as with the senior officials of the rating companies in recent weeks.

Additionally, he presented a strategy put together by the Bank of Israel that includes recommendations for economic policies in a variety of domains.

 View of Bank of Israel main offices in Jerusalem, on January 2, 2023.  (credit: YONATAN SINDEL/FLASH90) View of Bank of Israel main offices in Jerusalem, on January 2, 2023. (credit: YONATAN SINDEL/FLASH90)

Former Bank of Israel governors issue similar warnings

The meeting was held as former Bank of Israel governors Karnit Flug and Yaakov Frankel issues similar warnings against the judicial reforms

Yaron had previously warned Netanyahu of potential economic risks in regard to some of the coalition agreements and commitments and encouraged the new government to act carefully and responsibly.

Earlier on Tuesday, Netanyahu and Finance Minister agreed on the details for the 2023-24 state budget which included adapting to the Bank of Israel's monetary policy to stabilize the Israeli economy for the next four years.