Bloomberg on Israel's judicial reform: I don't blame investors for leaving

Michael Bloomberg, CEO of the financial and media company Bloomberg and former mayor of New York City, spoke out on Sunday against the Israeli government's proposed judicial reform for the first time.

In an opinion piece penned for the New York Times, Bloomberg wrote that the government led by Prime Minister Benjamin Netanyahu is "courting disaster by imperiling Israel’s alliances around the world, its security in the region, its economy at home and the very democracy upon which the country was built."

"I have never gotten involved in [Israel's] domestic politics or criticized its government initiatives," Bloomberg prefaced his article before adding that, "due to my love for Israel, my respect for its people and my concern about its future are now leading me to speak out against the current government’s attempt to effectively abolish the nation’s independent judiciary."

I have never gotten involved in Israel's domestic politics, but my deep respect for its people and concern for its future has led me to speak out against the government's plan to effectively abolish the independence of its judiciary. https://t.co/l7z7t5tvwk

— Mike Bloomberg (@MikeBloomberg) March 5, 2023

Bloomberg: I don't blame investors for leaving Israel

Bloomberg explained that the economic damage caused by the judicial reform "is already being felt." The shekel slid 1.9% against the dollar to a nearly three-year low in February and experts have continuously warned the government that the plan presents a clear and present danger to Israel’s economy.

At least five Israeli companies, including cyber company Wiz, Papaya Global and Disruptive Technologies Venture Capital have already withdrawn funds from Israel in anticipation of an economic backlash to the reform. "As the owner of a global company, I don’t blame them," Bloomberg wrote.

"Companies and investors place enormous value on strong and independent judicial systems because courts help protect them, not only against crime and corruption but also government overreach," he added. "Just as important, they protect what their employees value most: Individual rights and freedoms," he wrote for NYT.

Bloomberg does credit Netanyahu for what he called an "extraordinary rise in Israel’s economic standing over the last generation," something that could be Netanyahu's "greatest achievement" according to Bloomberg.

Bloomberg: Netanyahu is throwing away his legacy

However, Netanyahu is risking throwing away Israel's progress and his own legacy, Bloomberg warned. 

Bloomberg, who unsuccessfully sought the Democratic nomination for the United States presidency in 2020, further warned that Israel could lose its close ties to the US and other Western nations. If it carries on its model of governance, one that "mirrors those of authoritarian countries" as per Bloomberg, Israel could suffer a "devastating loss for its security."

First signs of a deteriorating Israel-US relationship appeared last week when the White House condemned Finance Minister Bezalel Smotrich's calls for the State of Israel to wipe out Huwara, where West Bank settlers rioted, burning dozens of homes and vehicles. On Saturday evening, it was reported that Washington is considering barring Smotrich from entering the country.

Finally, Bloomberg noted that he hopes Netanyahu's coalition will respond to President Isaac Herzog's proposal for a judicial reform compromise, calling on Israel to "pull back and slow down."