New York CNN —The controversial overhaul of Israel’s judicial system risks plunging the country into further turmoil that will hurt its economy and security, Moody’s Investors Service warned on Tuesday.
“There is a significant risk that political and social tensions over the issue will continue, with negative consequences for Israel’s economy and security situation,” the credit ratings firm wrote in a report.
“Although domestic and geopolitical tensions have traditionally not had a major or lasting impact on Israel’s economy, a serious escalation of tensions with the Palestinians could endanger improved relations” between Israel and regional powers, Moody’s said.
In response to the Moody’s report, Israeli Prime Minister Benjamin Netanyahu issued a statement defending the resilience of the country’s economy.
“This is a momentary reaction, when the dust settles it will become clear that Israel’s economy is very strong,” Netanyahu and Finance Minister Bezalel Smotrich said in a joint statement.
Persons:
Moody’s, ”, “, ” Moody’s, Benjamin Netanyahu, ” Netanyahu, Bezalel Smotrich
Organizations:
New, New York CNN, Moody’s Investors, Tel, Finance, Nasdaq
Locations:
New York, Tel Aviv, Israel