Moody’s Report: ‘Israel’s’ Economy at Significant Risk

By Staff, Agencies

Moody’s Investors Service warned on Tuesday that the so-called “judicial reform” tensions pose risks for the “Israeli” entity’s economy and security.

“There exist significant risk that political and social tensions over the issue will continue, with negative consequences for Israel’s economy and security situation,” the credit ratings firm said in a special report.

Following the Tel Aviv 35 Index plunging by 5.2 percent over the past two days due to the “judicial” reform and mass protests it sparked in ‘Israel’, Moody’s warned the situation is “raising the risk of a constitutional crisis between the executive and judiciary.”

The report further mentioned that “We believe the wide-ranging nature of the government’s proposals could materially weaken the judiciary’s independence and disrupt effective checks and balances between the various branches of government, which are important aspects of strong institutions.”

“Although domestic and geopolitical tensions have traditionally not had a major or lasting impact on ‘Israel’s’ economy, a serious escalation of tensions with the Palestinians could endanger improved relations” between ‘Israel’ and regional powers,” the report added.

In response, “Israel’s” Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich on Tuesday evening issued a joint statement in response to Moody's report.

“This is a momentary response; when the dust clears, it will be clear that the ‘Israeli’ economy is very strong. The security industries are bursting with orders. The gas industry is increasing exports to Europe and seven companies are now competing for tenders to explore for gas in ‘Israel’ at an investment worth billion,” they stated.