(Bloomberg) --

Israeli Prime Minister Benjamin Netanyahu delayed a controversial plan to weaken the judiciary, after the proposals triggered mass protests and a nationwide strike that paralyzed the economy. 

His call Monday for dialog to reach a compromise came after winning crucial support from far-right coalition partner Itamar Ben Gvir, who agreed to give the prime minister more time. US President Joe Biden is concerned about the policy but is confident the country will avoid a civil war, his National Security Council spokesman said. 

Israeli Economy Minister Nir Barkat was among senior officials urging a pause, saying the overhaul is not worth a conflict after thousands took to the streets to protest both for and against the plans. Representatives of multiple business sectors stopped work, bringing the nation to a standstill.    

 

Key Developments

  • Israel’s Netanyahu Pauses Legal Overhaul Push After Protests
  • Israel’s Strikes Shake Economy in Bid to Stop Judicial Overhaul
  • Night of Rage Puts Netanyahu in a Tight Corner: Balance of Power
  • Israeli Markets Rally on Signs of Delay to Netanyahu’s Plans
  • In Pictures: Mass Protests Erupt in Israel Over Supreme Court Plan
  • Israel Defense Chief Calls for Freeze to Judicial Overhaul
  • Moody’s Is Latest to Warn Israel Credit at Risk From Legal Plans
  • Why Israel Is Bitterly Split by a Judiciary Overhaul: QuickTake

(All times CET)

Opposition Politicians Say Ready for Dialog (7:30 p.m.)

Opposition leader Yair Lapid said he’s ready for talks. “We need to build today the country where our children will live in the future,” he said. Another senior opposition figure, Benny Gantz, also said in a televised address he will enter into dialog with the government after Netanyahu said the judicial overhaul plans would be paused.

Powerful Labor Group Calls off National Strike (7:27 p.m.) 

A main union suspended a mass walkout that was joined by workers in sectors ranging from hotels and malls to ports and the international airport after the prime minister’s comments. Israel’s embassy in Washington will reopen in response, the spokesman said. 

Netanyahu Delays Controversial Judicial Plan (7:15pm)

Prime minister calls for dialogue with opponents of judicial proposals to reach compromise. “I will not allow Israel to be torn to shreds,” he says in address to nation from his office rather than the Knesset, Israel’s parliament in Jerusalem, where mass protests are taking place. 

Biden Not Worried By Any Kind of Civil War (6:40 p.m.)

US President Joe Biden “believes that one of the great things about Israel is its strong history of democracy,” National Security Council spokesman John Kirby told reporters. That said, the president has “concerns” over the legislation and has shared them directly with Netanyahu, he said. 

Supporters of Judicial Reform Start Protest (6:06 p.m.)

Thousands of supporters of the government’s plans to overhaul the judiciary began to demonstrate outside the Knesset, urging politicians to press on with the controversial legislation. “The people demand legal reform!” they chanted.

They joined thousands more protesters against the proposals, and the two camps shouted “Democracy!” and “Reforms!” at each other as they marched toward the main buildings. 

There are no reports of serious incidents to date, though La Familia, a football fans club known for racist remarks and violence, urged supporters to take part. 

Coalition Partner Consents to Plan Delay (5:24 p.m.)

Ben Gvir announced that his party agreed to a month’s delay in pressing ahead with the legislation. Whereas the far-right faction had originally insisted the government finish the process by April 4, it will now allow Netanyahu to resume in the Knesset session starting in May. In exchange, Ben Gvir will be given command of a national guard aimed at improving security.

The compromise could clear the way for a formal postponement despite opposition from certain other ministers, none of which had threatened to leave the coalition.  

Finance Minster Urges Backers to Defend Policy (3:21 p.m.)

Finance Minister Betzalel Smotrich said in a broadcast clip that “we cannot allow the halting of the reform that will increase supervision over the courts and strengthen the democracy.”

Saying he and his supporters are in the majority, he urged them to join him in a protest Monday at the Knesset Monday evening. “We will not allow them to steal away the country,” he said.

Labor Leader Says a Delay to Plan Isn’t Enough (2:42 p.m.)

Labor Party leader Merav Michaeli said delaying the judicial overhaul isn’t enough to enter a dialogue — the policy needs to be canceled outright. While her party only has four seats in the 120-seat Knesset, she is a leader of the leftist opposition and her stand suggests a difficult road ahead for the government.

Strikes Upend Economy in Bid to Stop Overhaul (2:37 p.m.)

Israel’s biggest labor group triggered one of the most widespread strikes in the country’s history to paralyze the economy and pressure Netanyahu to halt a plan to weaken the judiciary. 

The Airports Authority grounded most outbound flights ahead of the busy Passover holiday travel period, while walkouts took place at ports, major retailers and Israel’s largest investment fund, FIMI. Bank Hapoalim BM, one of the country’s largest lenders, closed all its branches.

 

Israeli Markets Rally on Signs of Hold Up (1:45 p.m.)

Israeli markets rose on signs Netanyahu is considering delaying his plan. The shekel strengthened as much as 1.4% against the dollar after erasing earlier losses, while stocks advanced. The yield on the nation’s local-currency 10-year bond fell 11 basis points to 3.82%.

Economy Minister Supports a Halt to Plan (11:23 a.m.)

Nir Barkat said he would back Netanyahu “in his decision to halt and reconsider,” according to a statement. “The reform is necessary and we will do it, but not at the price of a civil war.” 

He called on all members of the coalition to stand behind the prime minister, adding “we can not bring down a right-wing government with our own hands. Our strength is in our unity.”

 

--With assistance from Ethan Bronner, Gwen Ackerman, Marissa Newman, Netty Ismail, Amy Teibel, Jennifer Jacobs and Jordan Fabian.

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