It will now be suspended until parliament returns after the
break for the Passover holiday and Independence Day next month.
While the government says the overhaul is needed to rein in
activist judges and set a proper balance between the elected
government and the judiciary, opponents see it as an undermining
of legal checks and balances and a threat to Israel's democracy.
Israel's economy grew 6.4% in 2022 but is expected to grow
around 3% this year amid a global slowdown and a steep rise in
interest rates.
(Reporting by Steven Scheer; Editing by Sharon Singleton)
By Steven Scheer
JERUSALEM, March 28 (Reuters) - Israel's central bank
chief said on Tuesday that independent institutions are crucial
for economic growth, as the shekel strengthened in a
relief rally after the government delayed its contested judicial
overhaul plan for a month.
The shekel, which had been the subject of wild swings in
recent week in reaction to the political crisis, gained 1.4% to
3.543 per dollar in its largest one-day move since March 6.
Tel Aviv share indices were largely unchanged while
government bond prices were up as much as 0.4%.
"The existence of strong and independent institutions is
essential for the stability and prosperity of the economy over
time," Bank of Israel Governor Amir Yaron said on Tuesday in a
letter to parliament's finance committee at the outset of the
central bank's 2022 annual report.
He added that significant changes need to be made by broad
consensus.
Prime Minister Benjamin Netanyahu on Monday evening paused
his signature reforms after a day of nationwide turmoil when
workers joined a general strike against the proposal and
hundreds of thousands of protesters took to the streets.
Demonstrators for months have protested in Tel Aviv,
Jerusalem and other cities against the plans by Netanyahu's
nationalist religious coalition to hand control over judicial
appointments to the executive while giving parliament the power
to overturn Supreme Court rulings.
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