THE ONLY EXISTENTIAL THREAT IS INTERNAL:

[T]he protesters felt they were winning. It wasn't just the success in mobilizing such a large number of people to Jerusalem on a weekday. It was also the surveys showing that a majority of Israelis oppose the government's plans. Above all, it was the belief, privately shared by many in government, that the "legal reform" plans, presented on December 29, were rushed.

The perceived threat to liberal democracy has caused Israel's normally non-political business community, especially the hi-tech companies and investors, to come out on the side of the protestors. International investment banks and credit rating agencies have begun to pay attention, as has the US government. The plan looks like a rare unforced error by an old grandmaster.

Among those who have worked with Netanyahu over the years, there's surprise at how matters are turning out. A senior civil servant in economic affairs has said: "I just can't work it out. He's the most financially literate politician I've ever advised... He would never do anything to harm Israel's prosperity, he's much too risk averse. My only explanation is that, since he's someone who has always been motivated by fear, there's something now that he's afraid of more than ruining the Israeli economy."

Tweet   @brothersjudd