The High Court has delivered the most serious blow to Prime Minister Benjamin Netanyahu’s credibility since he began his fourth term in office.
The court struck down a key part of the natural gas framework agreed on by the government and the Israeli-US energy companies controlling the largest gas-fields off Israel’s Mediterranean coast.
The part of the agreement rejected by the court was a “stability clause”, which guaranteed that, for 10 years, there would be no legislative changes that could affect the terms of the deal.
Mr Netanyahu had expended a great deal of political capital to push the agreement through the cabinet and the Knesset.
The Prime Minister has claimed that the framework, which promised the companies fixed prices when selling their gas in Israel, was essential to making sure that “the gas doesn’t remain underground” and crucial to Israel’s economy and security. In fact, the agreement was so important to Mr Netanyahu that he made the irregular step of appearing personally in court last week to argue in its favour.
The issue has caused consternation in his government for nearly a year now, with two ministers refusing to vote, citing conflict of interest, and former economics minister Arye Deri resigning to avoid having to overrule the anti-trust commissioner, who opposed the framework.
A well-organised public campaign against the deal included four groups who petitioned the High Court. The framework will now have to be revised and passed again by the Knesset.
The court’s decision will also exacerbate the already tense relationship between the Supreme Court and the government, with many ministers accusing the court of exceeding its powers to overturn policy.
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