Attorney General Avichai Mendelblit rejected the request of Prime Minister Benjamin Netanyahu's lawyers to postpone the hearing scheduled for the beginning of October, even though the elections will take place about two weeks before the hearing.
On behalf of Mandelblit, it was stated: "After considering all the relevant interests, the attorney general found that there was no justification for granting the request." The legal system estimates that Netanyahu will petition the High Court of Justice.
Three weeks ago, the prime minister's attorney requested that the hearing be postponed, and claimed that the scope of the investigation materials, together with the prime minister's business, did not allow him to meet the deadline set by the attorney general. "The length of time given to the hearing is unreasonable, even in cases that are much smaller, the amount of time given to study the material and the preparation of a significant argument in many months," he said.
A week after S & P, the Moody's credit rating agency also refers to the distribution of the Knesset and the decision to hold new elections in September. Although it does not change its credit rating outlook for Israel at this stage, the negative tone is evident in Moody's announcement, certainly in comparison with the positive tone that characterized S & P's announcement.
Moody's emphasized that political instability has delayed the number of months of coping with the large deviation of the government deficit. Moody's also notes with concern the weakness in the state's tax revenues, which have grown since the beginning of the year at a negligible rate of 0.2% and the steep 16.8% jump in civilian ministries' expenses since the beginning of the year.
"The extension of the election period will have a negative effect on the short-term budget management that the government will not be able to take the necessary steps to prevent the deficit from exceeding the target of 2,019, which stands at 2.9%," Moody's writes, adding that the repeated elections will freeze the promotion of reforms needed to ensure growth Of the economy in the coming years. Nevertheless, Moody's notes the robust growth of the Israeli economy, which has demonstrated impressive immunity to shocks, and the improvement in the structure of the government debt and its downgrading - as current considerations are weighing on the negative developments. On July 20, Moody's raised Israel's credit rating outlook to "positive", a move which means a high chance of raising the credit rating in the next 18 months.
Regarding Prime Minister Benjamin Netanyahu, Moody's notes that "the possibility of bringing criminal charges against Prime Minister Benjamin Netanyahu on corruption charges will harm the stability of a future government, even though the proceedings themselves are expected to continue for several years."