(Adds details)
By Steven Scheer
JERUSALEM, March 6 (Reuters) - Israeli President Isaac
Herzog on Monday said a compromise in the government's judicial
overhaul plan could be imminent, sending financial markets
sharply higher even though there was no immediate sign of a deal
between the government and opposition.
Anti-reform protests continued to spread, with local media
circulating a letter by 10 former air force chiefs to Prime
Minister Benjamin Netanyahu warning of the "grave and tangible"
threat posed by the judicial overhaul plan, a day after
reservists said they would not turn up for training in protest.
Although the president is a ceremonial post, Herzog convened
100 heads of authorities for an emergency meeting designed to
come up with a solution to proposals that have split the country
and led to nationwide protests.
"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.
Heads of the opposition Yair Lapid and Benny Gantz issued a
joint statement in response, commending the president's efforts
to reach a compromise but demanding that Netanyahu halt the
legislation process to allow for "honest and effective
dialogue".
"Israel is on the brink of a national emergency - and
Netanyahu refuses to stop," they wrote on Twitter.
Netanyahu did not immediately respond to Herzog's efforts.
Herzog last month floated a compromise plan to spare the
country what he described as a "constitutional collapse".
The judicial overhaul plan, which has already received
initial parliamentary 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 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.
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, the shekel had fallen nearly 10% against the
U.S. currency in just one month, and was trading at a three-year
low.
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 were up 1.5% and
government bond prices were also up close to 1%.
(Reporting by Steven Scheer; Editing by Angus MacSwan and
Christina Fincher)
Messaging: steven.scheer.thomsonreuters.com@reuters.net;
Twitter: @StevenMScheer))
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