Clear and Present Danger
Yodfat Harel Buchris: "The legal reform and the 61-MK override proposal mean Israel will no longer meet ESG rules"
"In the last month, a very negative national atmosphere has engulfed us. It doesn't matter which side of the political map you are on, the discourse is negative: this and that is forbidden, we will arrest people who do things. You feel stress from the moment you get up to the moment you go to bed. It's a destructive atmosphere that has hit the country even before anything has actually happened. We all know the feeling from the stock market: as soon as the sentiment is negative, no matter how good the company is—investors flee. They don't have to wait for something to happen.
"In Israel, 80% of investments in high-tech are foreign money. The legal reform and the 61-MK override proposal mean Israel will no longer meet ESG rules, which deal with social issues, corporate governance and environmental aspects. If we do not comply with these rules, exits will dry up, multinational development centers will close, and products of certain companies may disappear from the shelves.
"Beyond that, what worries me the most is the effect of the recent changes on Israeli creativity and innovation. Entrepreneurs who are currently on relocation abroad or studying will not be in a hurry to return, and if they establish companies abroad they will attract more friends from here. I have children growing up here, and I don't want them to leave. My grandmother did not fight the Holocaust in vain; she was a hero, she received honors, and she is my role model for not giving up, but staying and fighting. I am ready to accept any task of rebuilding trust with the government. If Benjamin Netanyahu will be ready to sit down with us, the businessmen and women, and hear about the accumulated damage already visible on the ground - I'm sure he will be convinced."
Yodfat Harel Buchris is the Managing Director at Blumberg Capital
