Israel business leaders urge Netanyahu to keep defence chief Gallant

By Steven Scheer

JERUSALEM (Reuters) - Israel's Business Forum on Tuesday urged Prime Minister Benjamin Netanyahu to not fire his defence minister, saying it would create more division and weaken the country after reports of an imminent political shake-up rattled the country.

Israel's leading television channels and news websites have reported that Netanyahu, under pressure from far-right coalition partners, was contemplating firing Defence Minister Yoav Gallant and replacing him with a former ally turned rival, Gideon Saar, who is currently a member of the opposition.

The forum, which consists of 200 heads of Israel's largest companies that employ many private sector workers, said Netanyahu should stop "messing around with petty politics" during a war.

"Immediately stop the process of replacing (Gallant)," the forum said in a statement. "The firing of the minister weakens Israel in the eyes of her enemies, and will further deepen the division in the people of Israel."

Such a move would be a shock to the political and security landscape, especially as the war with Islamist group Hamas in Gaza rages on and with the looming threat of all-out war between Israel and Iran-backed Hezbollah in Lebanon.

Netanyahu denied that he was in negotiations with Saar, though he did not refer to his plans for Gallant. Saar denied that he was negotiating with some members of the coalition.

"The prime minister knows better than anyone that all the economic indicators also prove that Israel is deteriorating into an economic abyss and sinking into a deep recession," the forum said. "The last thing Israel needs at this time is the firing of a defence minister - which will continue to shock the country."

On Monday, official data showed the economy grew an annualised 0.7% in the second quarter, revised down from a prior estimate of 1.2%. On a per capita basis, the economy contracted 0.9% in the quarter.

In March 2023, Netanyahu fired Gallant after he broke ranks with the government and urged a halt to a highly contested plan to overhaul the judicial system. That triggered mass protests and Netanyahu backtracked.

(Reporting by Steven Scheer; editing by Maayan Lubell and Angus MacSwan)

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