Israel and the Middle East News Update

Wednesday, October 2

Headlines:

• 22nd Knesset to Be Sworn in Tomorrow Amid 3rd Election Talk • Gantz Cancels Meet with Netanyahu: ‘Not Acting in Good Faith’ • PM to Convene Right-Wing Allies as His Criminal Hearings Begin • Arab MK: If Center-left Forms Gov't With Haredis, We May Support It • Report: Macron Brokered Document Between Rohani and Trump • Putin, Rouhani Meet in Armenia to Discuss Regional Issues • Israel Lets Gaza Workers Enter in Bid to Reduce Tension • 130,000 Sephardic Jews Apply for Spanish Citizenship by Deadline

Commentary:

• Ha’aretz: “3 Cases, 4 Days and Dozens of Lawyers: Netanyahu's Pre- indictment Hearing Begins Wednesday” - By Netael Bandel, columnist at Ha’aretz • Yedioth Ahronoth: “Not in Good Faith” - By Yuval Karni commentator at Yedioth Ahronoth

S. Daniel Abraham Center for Middle East Peace 633 Pennsylvania Ave. NW, 5th Floor, Washington, DC 20004 The Hon. Robert Wexler, President ● Yoni Komorov, Editor ● Aaron Zucker, Associate Editor

News Excerpts October 2, 2019 Jerusalem Post 22nd Knesset to Be Sworn in Tomorrow Amid 3rd Election Talk The 22nd Knesset will be inaugurated on Thursday, despite persistent threats from all political sides that it will soon be dissolved ahead of a third election in less than a year. There are only eight new MKs this time, and another nine are returning from past stints as legislators, which means that 103 members of the 22nd Knesset will be sworn in for the second time in 2019. Starting at 8 a.m. on Thursday, MKs can arrive at the Knesset, walk down a red carpet and receive a boutonniere and have a souvenir photo taken. In the afternoon, there will be a celebratory reception in the Chagall Hall. See also, “Israeli unity government talks falter after Netanyahu rival rejects meeting” (Reuters)

Times of Israel Gantz Cancels Meet with Netanyahu: ‘Not Acting in Good Faith’ Blue and White on Tuesday evening said an expected meeting between its party chief Benny Gantz and Netanyahu Wednesday would not take place, as there were no signs that the premier was truly interested in reaching a power-sharing compromise. The announcement led to both parties accusing each other of intransigence and claiming that the other side was pushing the country toward election. And it could pave the way to Netanyahu ending his coalition efforts and returning the mandate to do so to Israel’s president. Negotiators from both parties had been set to convene again on Wednesday morning, with the leaders then meeting in the evening. But Blue and White said that “at this stage the most basic conditions to hold an additional meeting between the negotiating teams have not ripened.” See also, “Gantz's Party Nixes Negotiation Meeting With Netanyahu's Likud Over Unity Government” (Ha’aretz)

Times of Israel PM to Convene Right-Wing Allies as His Criminal Hearings Begin PM Netanyahu will seek to shore up right-wing support Wednesday morning, with the start of a high- stakes legal hearing and the possible end of coalition negotiations suspended over his political future like twin swords of Damocles. A long-awaited pre-indictment hearing with Attorney General Avichai Mandelblit comes as coalition negotiations have foundered, leading to widespread speculation that the longtime Likud leader may end his bid to form a new government early, which may eventually mean an unprecedented third round of elections. Netanyahu is set to meet Wednesday morning with the heads of his 55 block parties to discuss the deadlock in coalition talks. See also, “ NETANYAHU PRE-INDICTMENT HEARING WITH MANDELBLIT SET FOR TODAY” (JPost)

Ha’aretz Arab MK: If Center-left Forms Gov't With Haredis, We May Support It The Joint List of Arab-majority parties does not rule out the possibility of supporting a government led by Kahol Lavan, together with leftist and ultra-Orthodox parties, Ta'al party leader MK Ahmad Tibi told Channel 13 on Saturday. Tibi clarified that his alliance would support a government "from the outside," which means it would not actually be part of a ruling coalition.“Kahol Lavan, Labor, Meretz, the Haredim [ultra-Orthodox], that’s 60 [Knesset seats],” Tibi said. “There’s something to talk about with the Joint List. This is a scenario from the 1990s,” he added, referring to Prime Minister Yitzhak Rabin’s second government, which was supported from the outside by the Arab parties. 2

Ha’aretz Report: Macron Brokered Document Between Rohani and Trump U.S. President Donald Trump and his Iranian counterpart Hassan Rohani had agreed to a four-point document that was mediated by French President Emmanuel Macron as a basis for a meeting as well as a revival of talks between Washington and Tehran, American magazine Politico reported on Tuesday. Citing French officials, the report said that the document didn't bear fruit because the Iranian president balked. Rohani had insisted that Trump declare he would lift U.S. sanctions as a precondition for a meeting. Macron also tried to arrange a phone call between the two leaders as an alternative for the meeting, but Rohani declined, the report added. Despite their failure to broker contacts between the U.S. and Iran, French officials told Politico they were undeterred. "The alternative is a major conflict in the Gulf," one official was quoted as saying. See also, “Report: US, Iran agreed on plan for talks, broke up over sanctions” (Politico)

I24 News Putin, Rouhani Meet in Armenia to Discuss Regional Issues Russian President Vladimir Putin and his Iranian counterpart Hassan Rouhani met on the sidelines of the Eurasian Economic Council in Yerevan, Armenia, on Tuesday. Iran's Hormuz Peace Endeavor, a Gulf peace initiative unveiled at the recent UN General Assembly in New York, was one of the top issues on their agenda. While the details of the initiative, which is supposedly aimed at upholding regional stability and global energy security, are yet to be rolled out, Rouhani's comments hint that it is centered on a demand of US withdrawal from the region. The two leaders also discussed the beleaguered 2015 nuclear deal, with Putin reportedly stressing Moscow's support for the accord.

Ynet News Israel Lets Gaza Workers Enter in Bid to Reduce Tension Israel is quietly allowing thousands of Palestinians to enter from the Gaza Strip to conduct business and work menial jobs, apparently as part of understandings with the ruling Hamas militant group aimed at preventing a fourth war in the blockaded territory. Israel effectively revoked thousands of work- permits when it joined Egypt in imposing a crippling blockade on Gaza after Hamas seized power from rival Palestinian forces in 2007. The blockade, along with three wars between Hamas and Israel, has devastated the economy in Gaza, where unemployment is over 50%. In recent months, Israel has quietly provided some relief as part of an unofficial, Egyptian-brokered truce with Hamas, in exchange for reduced rocket fire from the territory and the scaling back of weekly protests along the border. See also, “Israel quietly lets in thousands of Gaza workers, in bid to ease tensions” (TOI)

Ynet News 130,000 Sephardic Jews Apply for Spanish Citizenship by Deadline More than 130,000 descendants of Sephardic Jews expelled en masse from Spain in 1492 have requested Spanish citizenship in the past four years, the Justice Ministry said on Tuesday, hours after a deadline for applications expired. About half of the 132,226 applications were submitted in the past month alone as the deadline drew near, it said. The bulk of applications came from Latin American countries, mainly Mexico, Colombia and Venezuela. For the past four years, Spain allowed the foreign Sephardim - old Hebrew for Spaniards - to apply to become Spanish nationals without giving up their current citizenship. They had to present proof of their Sephardic background through their surnames, language or ancestry. The ministry said it would process all applications. 3

Ha’aretz – October 2, 2019 3 Cases, 4 Days and Dozens of Lawyers: Netanyahu's Pre- indictment Hearing Begins Wednesday

By Netael Bandel, columnist at Ha’aretz

• In the basement of the Justice Ministry offices on Salah ad Din Street in Jerusalem, in a windowless room devoid of celluar service, the first day of Prime Minister 's pre-indictment hearing begins Wednesday. • Twelve of Netanyahu's lawyers will cram in across from some 20 Justice Ministry officials who have been following the prime minister's corruption cases since 2016. At the premiere's request, the hearing will span four days and will end on Monday evening – a day before the eve of the Jewish day of judgement, Yom Kippur. By December, only several weeks away, the Justice Ministry aspires to reach a final decision. • The first two days will be dedicated to discussion of Case 4000 – which deals with a supposed quid-pro-quo with media mogul Shaul Elovitch. Next week, on Sunday and Monday, Netanyahu's lawyers will present their arguments regarding Case 1000 (which revolves around lavish gifts from billionaires) and Case 2000 (regarding Netanyahu's exchanges with Yedioth Ahronoth publisher Arnon Mozes). • Case 4000 is considered the most damning of the three, and Attorney General Avichai Mendelblit announced in February that he intends to charge the prime minister with bribery. In Cases 1000 and 2000 the attorney general intends to charge Netanyahu with fraud and breach of trust. • At the head of the defense team stand Amit Hadad and Yosef Ashkenazi. They will be joined by Israel Wolnerman, additional lawyers from their offices, and, apparently, Attorney Ram Caspi who advises the team. • At the head of the Justice Ministry's team stands the man who will ultimately decide whether or not to file an indictment – Avichai Mendelblit. He will be joined by State Prosecutor Shai Nitzan, the lead prosecutor on the Netanyahu cases Liat Ben-Ari, Deputy State Prosecutor Nurit Litman, and the Deputy Attorney Generals Raz Nizri and Amit Merari, among others. • The prime minister has declared several times that the cases will "collapse" during the hearing. As of now, it doesn't look like that possibility is on the table. Take, for example, the fact that of 20 lawyers who have worked on the Netanyahu cases, not a single one has said that the prime minister should be charged with a lesser crime than bribery. • Given that the cases against Netanyahu are circumstantial, the defense lawyers need to do more than refute a one or two pieces of "golden evidence." They would have to disassemble the entire puzzle built by the prosecutors and rebuild it based on evidence of an entirely different narrative – one that isn't criminal. • Case 4000, believed to be the most serious of the cases against Netanyahu, centers on suspicions that the prime minister acted to advance the interests of media mogul Shaul Elovitch in a manner that helped the owner profit by more than a billion shekels. In return, Netanyahu and his wife Sara received favorable news coverage on the Walla website that is under Elovitch's control. Netanyahu, who was acting as communications minister at the time, is

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suspected of benefitting Elovitch through state's witness Shlomo Filber, whom he appointed as his bureau chief. • In the draft indictment, text messages between the involved parties, including Elovitch, are quoted and tie news coverage of Netanyahu to his relations with Bezeq. The case is also built on testimony by state's witness Nir Hefetz, former media adviser for Sara Netanyahu, which links Netanyahu's actions to the Walla news site. The alleged quid pro quo between the Netanyahus and Elovitches was first revealed by ’s Gidi Weitz in November 2015, in an exposé titled “The Israeli News Site in Netanyahu's Pocket.” • Netanyahu and Elovitch's defense maintains that there is no connection between Netanyahu's actions on behalf of Bezeq and the coverage on the Walla news site. The prime minister claims that the decisions he made on matters connected to the company were reasonable and that they were supported by all the professionals in the field. According to Netanyahu, the merger he approved between Bezeq and the satellite company , both owned by Elovitch, was solely technical. • Netanyahu also claims that Walla's news coverage of him was not sympathetic, but even hostile, and that he did not sway the coverage but rather helped adjust it to match the owner's policy, which claims to offer fair and balanced coverage. Netanyahu also claims that no one has ever been accused of bribery for receiving good press. • Case 2000 revolves around Netanyahu’s ties with Arnon (Noni) Mozes, the publisher of Israeli daily Yedioth Ahronoth. The prime minister is suspected of offering to promote legislation that would curb Yedioth’s main competitor, the free daily newspaper Israel Hayom, in return for better coverage of the prime minister in Mozes’ publication as well as its news site Ynet. Some of the conversations between Netanyahu and Mozes were recorded, per the prime minister’s request, on the cellphone of then-bureau chief Ari Harow. Harow has since signed a state’s witness deal. • Netanyahu later approached ministers Ze’ev Elkin and Yariv Levin and asked them to inquire whether such legislation to benefit Yedioth could be promoted during an election. The draft indictment alleges that by negotiating with Mozes over legislation, Netanyahu exploited his position as prime minister. • Netanyahu and Mozes both claimed that they didn’t plan on acting on the promises they made during the talks, and had only tried to manipulate one another. The premier also claimed that law enforcement shouldn’t get involved in the ties between public representatives and the media, and that the investigation against on him this matter reflects a bias on behalf of police. Netanyahu’s attorneys have asked Mendelblit to interrogate the lawmakers who support the anti- Israel Hayom bill, but Mendelbit has rejected this request. • Case 1000 centers on suspicions that Netanyahu received lavish gifts worth hundreds of thousands of shekels from tycoons, primarily Hollywood producer Arnon Milchan. Milchan and his former business partner, Australian billionaire James Packer, are suspected of having given Netanyahu and his wife boxes full of champagne bottles, cigars and other goods, per the Netanyahus’ demands. • The draft indictment says that “Netanyahu acted while manning public roles in favor of Milchan, in numerous personal and business affairs, while he was in a grave conflict of interests between the common good and his personal commitment to Milchan.” Netanyahu’s main defense line in 5

this case is his claim that “it’s permissible to receive presents from friends.” According to him, Milchan gave him the goods due to their personal friendship and not because of the sway he holds as prime minister. • Netanyahu also claims that his late attorney, Jacob Wienroth, told him that there was no issue with him receiving such gifts. Netanyahu sought to minimize the affair further by saying that his wife may have asked Milchan to make the purchases for her unbeknownst to him. As for his involvement in issues pertaining to Milchan, Netanyahu claimed that his motives were always appropriate.

SUMMARY: In the basement of the Justice Ministry offices on Salah ad Din Street in Jerusalem, in a windowless room devoid of celluar service, the first day of Prime Minister Benjamin Netanyahu's pre-indictment hearing begins Wednesday. Twelve of Netanyahu's lawyers will cram in across from some 20 Justice Ministry officials who have been following

the prime minister's corruption cases since 2016. At the premiere's request, the hearing will span four days and will end on Monday evening – a day before the eve of the Jewish day of judgement, Yom Kippur. By December, only several weeks away, the Justice Ministry aspires to reach a final decision. The first two days will be dedicated to discussion of Case 4000 – which deals with a supposed quid-pro-quo with media mogul Shaul Elovitch. Next week, on Sunday and Monday, Netanyahu's lawyers will present their arguments regarding Case 1000 (which revolves around lavish gifts from billionaires) and Case 2000

(regarding Netanyahu's exchanges with Yedioth Ahronoth publisher Arnon Mozes).

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Ma’ariv, September 28, 2018 Not in Good Faith

By Yuval Karni commentator at Yedioth Ahronoth

• Negotiations over the establishment of a unity government, secret talks between party leaders, talks about cooperation between political rivals—all of the above have been a routine feature of Israeli politics. Ever since the days of Peres and Shamir, unity talks have been held between the Likud and the Alignment, between the Likud and the Labor Party, between the Likud and the Zionist Union and once again between the Likud and the Labor Party. But negotiations have never been held over unity between blocs of parties. • In practice, negotiations over a unity government lack all feasibility when one side is a party and the other arrives with its entire bloc, parties that include the ultra-right, the Haredim and the Likud. A unity government is supposed to be formed around centrist and moderate common ground, enabling a majority of the public to agree with it. When Netanyahu comes to negotiations over forming a unity government with his entire bloc he is showing a lack of good faith in the best-case scenario. That means that he has to choose: either real unity negotiations or new elections. And we’re on the way to new elections. • On Sunday, on the eve of Rosh Hashanah, the Likud and Blue and White’s negotiating teams met, and the results of that meeting were entirely predictable: no negotiations for a unity government are being held; it’s all just idle talk. Netanyahu tried to show that he was eager to unite the country and like a showman, called Blue and White Chairman Benny Gantz and suggested they meet in the immediate future. He literally begged: “I’ll come to your home in Rosh Haayin,” he said to Gantz. That was the same Netanyahu who just a few weeks earlier had pledged on the pages of his mouthpiece: “I will not form a unity government with Gantz.” • The truth is that there is no real desire on either side to reach a unity government agreement. It’s all been a bunch of kindergarten-level transparent spins, games and gambits. Netanyahu believes that if he drags the State of Israel into a third election he’ll buy several more precious months as prime minister during a most critical time for him in his legal and political life. Blue and White is hardly eager to enter into a unity government with Netanyahu, who even if formally incapacitated will continue to oversee his legal affairs from the official residence on Balfour Street. In other words, we’ll have two prime ministers. If the matter were only up to Benny Gantz then maybe there would be some basis for talks, but Gantz is in a minority position: Yair Lapid, who is second on his list, has been waging a fierce internal war—quietly, for the time being— against forming a unity government as long as Netanyahu is still around. Bogie Yaalon and Gabi Ashkenazi don’t believe that anything is ever going to work with Netanyahu either. • A unity government is truly what is needed at present. The time has arrived for things to cool down and for the public to be able to relax. The State of Israel is exhausted, hurting and bruised from two insane elections and their campaigns. The bad news is that it isn’t over at all. Judging by the looks of things at present, we’re galloping towards a third election. And there’s no one out there who is going to save us.

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