Policy Changes in Israel’s New Government

Policy Brief Program

January 2023

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Recent Israeli Policy Changes: 

• In light of Palestinian efforts to address the Israeli occupation of the West Bank at the International Court of Justice, the Israeli Cabinet announced new sanctions against the Palestinian Authority.
  • Israel will use $40 million in Palestinian tax revenue to compensate victims of terrorist attacks committed by Palestinians, freeze all building permits for Palestinians in Area C of the West Bank, and deny Palestinian officials VIP permits allowing freedom of movement between border checkpoints. 
• Last week, Israeli Justice Minister Yariv Levin presented a set of judicial reforms that limit the power of the Supreme Court.
  • The proposals allow a Knesset majority to override Supreme Court decisions and end the “reasonableness standard,” which permits the High Court to intervene in government decisions ruled as unreasonable. 
• Additionally, National Security Minister Itamar Ben Gvir ordered Israeli police to remove Palestinian flags from public spaces, labeling the flags as incitement of terrorism against Israel.

Domestic and International Responses:

• On January 7, thousands of Israelis protested the reform proposals and the new coalition government in Tel Aviv. 
• Palestinian Prime Minister Mohammad Shtayyeh accused the Israeli government of attempting to topple the Palestinian Authority and wage a “new war against the Palestinian people.” 
• Former Israeli Supreme Court head Aharon Barak denounced the judicial overhaul, expressing concern for potential human rights abuses and tyranny of the majority.
• While the Biden administration has taken steps to improve Palestinian relations, including appointing a Special Representative for Palestinian Affairs and re-authorizing funding to the Palestinian Authority cut during the Trump administration, diplomatic engagement with the new Israeli government has simultaneously progressed. 
  • On January 9, Strategic Affairs Minister Ron Dermer arrived in Washington to meet with White House and State Department officials. 
  • Secretary of State Antony Blinken and National Security Advisor Jake Sullivan will visit Israel this month to discuss Israeli security, Iran’s regional threat, and the Abraham Accords. 
• J-Street condemned the punitive sanctions against Palestinian leadership and called on the United States government to oppose the measures.

Background on New Israeli Government:

• Former Prime Minister Benjamin Netanyahu returned for a third term in a coalition deal between his Likud party and several far-right religious parties. He is the longest serving prime minister in Israeli history. 
• Israel’s new government is the most right-wing administration in the country’s history. Many have attributed this rightward shift to changing generational demographics in Israel: 64 percent of Israeli Jews aged 18 to 34 identify as right-wing, versus only 47 percent of those over 35.
  • Notably, left-wing party Meretz failed to gain Knesset representation for the first time since its 1992 establishment.