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Senior officials at Israel's Finance Ministry warned that the government's plan to overhaul the judiciary could significantly harm the economy, according to documents seen by Reuters on Tuesday.
Officials presented the documents to Finance Minister Bezalel Smotrich during an internal discussion on Monday regarding the economic impact of the plan, which would give greater government sway in selecting judges and limit the power of the Supreme Court to strike down legislation.
The package of reforms sought by Prime Minister Benjamin Netanyahu's right-wing coalition has triggered weeks of unprecedented street demonstrations and warnings by analysts of an economic backlash. The new documents shed light on the concern among the Finance Ministry's most senior officials.
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"Implementing the proposed judicial reform could bring very significant harm to the economy," said a document from the ministry's chief economist.
The ministry's budget department wrote separately that there have been "initial indications" of the development of negative sentiments towards the Israeli economy.
(Reporting by Ari Rabinovitch; Editing by Steven Scheer)