By Steven Scheer
JERUSALEM, March 6 (Reuters) - Israeli President Isaac
Herzog on Monday said a compromise over the government's plans
to overhaul the judicial system, which has led to mass protests,
is "closer than ever", sending financial markets sharply higher.
Although the president is a ceremonial post, Herzog convened
100 heads of authorities for an emergency meeting on how to come
up with a solution on proposals that have split the country and
led to nationwide protests, some of which have turned into
battles with police.
"We are closer than ever to the possibility of an agreed
outline. There are agreements behind the scenes on most things,"
Herzog said in a statement, without giving details.
He said it would now depend on leaders of the ruling
coalition and opposition to "put the country and the citizens
above everything else" and implement it, adding that his plan
works to placate both sides.
The judicial overhaul plan, which has already received
initial parliamentry approval, would give the government greater
sway on selecting judges and limit the power of the Supreme
Court to strike down legislation.
Critics of the planned law changes say Prime Minister
Benjamin Netanyahu - on trial on graft charges that he denies -
is pursuing steps that will hurt Israel's democratic checks and
balances, enable corruption and bring diplomatic isolation.
Proponents say the changes are needed to curb what they deem
an activist judiciary that interferes in politics.
Opposition leader Yair Lapid has called for compromise talks
and a freeze of the legislation for 60 days but Netanyahu said
he would only agree to negotiations without preconditions.
Since the proposals were introduced in late January, the
shekel has slumped against the dollar, alarming investors
wary that Israel might be joining the growing list of emerging
markets taking a more authoritarian stance to decision making.
By last week, its losses reached nearly 10% against the U.S.
currency in one month to a three-year low.
But analysts said optimism over a compromise sent the shekel
up 2% on Monday to 3.59 per dollar - its strongest level since
Feb. 21. Similarly, Tel Aviv share indexes and
government bond prices were also up close to 2%.
(Reporting by Steven Scheer; Editing by Angus MacSwan)
Messaging: steven.scheer.thomsonreuters.com@reuters.net;
Twitter: @StevenMScheer))
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