Under pressure from massive protests, Prime Minister Benjamin Netanyahu Monday paused his plan to overhaul Israel’s judiciary. However, National Security Minister Itamar Ben-Gvir, an ultranationalist who has pushed for quick passage of the package, said he would respect the delay but showed few signs of compromise.“The reform will pass,” he tweeted, adding: “No one will scare us.”

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 has ignited one of the biggest internal crises in Israeli history. The US welcomed Netanyahu’s decision, with US Senators Chris Murphy and Mitt Romney issuing a joint, bipartisan statement to that effect.

As per a report in the news agency Reuters, the judicial overhaul would give the executive control over appointing judges to the Supreme Court. It would also allow the government to override court rulings on the basis of a simple parliamentary majority.

Indonesia could lose its chance to host a global youth soccer tournament, and its chance to qualify for the 2026 World Cup, after refusing to welcome a team from Israel.

FIFA canceled an important preparatory step after regional governors and protesters demanded Israel’s team be excluded, and the tournament, planned for May 20-June 11, appears to be on hold.

The official draw for group assignments in the Under-20 World Cup, was supposed to take place in Bali Friday, but FIFA canceled the event after the island’s governor, Wayan Koster, called for a ban on the Israeli team playing there. (AP)

The Biden administration welcomed Israeli PM Benjamin Netanyahu’s announcement, making its encouragement clear by dangling the prospect of an upcoming visit, “soon,” by the Israeli premier to the White House.

“I had a nice night of sleep last night, thank God,” Nides, the US ambassador, told Israel Army Radio Tuesday. “This morning I’m optimistic and I applaud the move

Israel’s central bank chief said 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. While the battle may seem like an internal Israeli matter, its outcome could have important repercussions for the region and beyond.

Netanyahu’s coalition allies are dominated by religious and nationalist hardliners who oppose Palestinian statehood and have close ties to the West Bank settlement movement. A weaker court system could clear the way for more aggressive settlement construction and even annexation of West Bank lands. That could lead to further friction with the Palestinians, who seek the Israeli-occupied West Bank as part of a future independent state, as well as with Israel’s Western allies, who have voiced concerns about the overhaul and criticised the comments of some of his partners.