Israel's Business Forum urges Netanyahu to stop firing of Yoav Gallant

Israel's Business Forum on Tuesday urged Prime Minister Benjamin Netanyahu to not fire his defense minister, saying it would create more division and weaken the country after reports of an imminent political shake-up rattled the country.

Israel's leading television channels and news websites have reported that Netanyahu, under pressure from far-right coalition partners, was contemplating firing Defence Minister Yoav Gallant and replacing him with a former ally turned rival, Gideon Sa'ar, who is currently a member of the opposition.

The forum, which consists of 200 heads of Israel's largest companies that employ many private sector workers, said Netanyahu should stop "messing around with petty politics" during a war.

"Immediately stop the process of replacing (Gallant)," the forum said in a statement. "The firing of the minister weakens Israel in the eyes of her enemies, and will further deepen the division in the people of Israel."

Netanyahu denies talks with Sa'ar

Such a move would be a shock to the political and security landscape, especially as the war with Islamist terrorist group Hamas in Gaza rages on and with the looming threat of all-out war between Israel and Iran-backed Hezbollah in Lebanon.

Netanyahu denied that he was in negotiations with Sa'ar, though he did not refer to his plans for Gallant. Sa'ar denied that he was negotiating with some members of the coalition.

"The prime minister knows better than anyone that all the economic indicators also prove that Israel is deteriorating into an economic abyss and sinking into a deep recession," the forum said. "The last thing Israel needs at this time is the firing of a defense minister - which will continue to shock the country."

On Monday, official data showed the economy grew an annualized 0.7% in the second quarter, revised down from a prior estimate of 1.2%. On a per capita basis, the economy contracted 0.9% in the quarter.

In March 2023, Netanyahu fired Gallant after he broke ranks with the government and urged a halt to a highly contested plan to overhaul the judicial system. That triggered mass protests and Netanyahu backtracked.