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Tel Aviv, 21 March 2025 – Israeli business and technology representatives have sharply criticised the Israeli Supreme Court’s (BAGAT) decision to suspend the resignation of Shabak Chairman Ronen Barak, as well as the government’s response to the decision. In response, the country’s largest business leaders issued an ultimatum to Prime Minister Benjamin Netanyahu, threatening an economic strike if the government does not recognise the supremacy of the court.
The Business Forum of Israel, which unites about 200 CEOs of leading companies, issued a statement warning that if the government continues to undermine the rule of law and ignore the BAGAC’s decisions, a nationwide economic strike will be declared. “If there is no law for the government, there is no law for anyone. We will call on all Israeli citizens to stop implementing government decisions in all areas. The Israeli economy will come to a standstill,” the forum said in a statement.
The business leaders recalled that in 2023 they had already opposed the so-called “legal reform”, but suspended their protests after the war broke out, demonstrating solidarity with the state. However, the current situation, in their opinion, has become critical. The protest was joined by the High-Tech Headquarters, a coalition of technology companies and investment funds. “Refusing to comply with the court’s decision is a way to turn Israel into a third world country, where investors and capital will flee. We are ready to stop working and join the fight together with the public,” the sector representatives said.
The conflict over the attempted removal of Ronen Barak, the head of the Internal Security Service (Shabak), has exacerbated an already deep split in Israeli society. Critics accuse Netanyahu of seeking to establish one-man rule, ignoring the rule of law. The Prime Minister is increasingly positioning himself as the leader of a religious camp that rejects the principles of liberal democracy. The day before, Finance Minister Bezalel Smotrych proposed removing the defence of the democratic system from Shabak’s functions, which many saw as an attempt to redraw the foundations of Israeli statehood.
Analysts warn that the country is approaching the point at which a full-fledged civil confrontation could begin. The BAGAC’s decision to suspend Bar’s resignation was in response to an appeal by the opposition, which called the government’s actions hasty and in violation of the procedure. However, statements by some ministers about the “nullity” of the court rulings only added fuel to the fire, causing outrage among the business community.
An economic strike, if it occurs, could paralyse the country, as high-tech and big business are the backbone of the Israeli economy. Against the backdrop of war and internal crisis, Israel is facing one of the most serious challenges in its history.
