Legal Threats Close in on Israel's Netanyahu, Could Impact Ongoing Wars

The International Criminal Court (ICC) building is pictured on November 21, 2024 in The Hague. (Photo by Laurens van PUTTEN / ANP / AFP) / Netherlands OUT
The International Criminal Court (ICC) building is pictured on November 21, 2024 in The Hague. (Photo by Laurens van PUTTEN / ANP / AFP) / Netherlands OUT
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Legal Threats Close in on Israel's Netanyahu, Could Impact Ongoing Wars

The International Criminal Court (ICC) building is pictured on November 21, 2024 in The Hague. (Photo by Laurens van PUTTEN / ANP / AFP) / Netherlands OUT
The International Criminal Court (ICC) building is pictured on November 21, 2024 in The Hague. (Photo by Laurens van PUTTEN / ANP / AFP) / Netherlands OUT

Prime Minister Benjamin Netanyahu faces legal perils at home and abroad that point to a turbulent future for the Israeli leader and could influence the wars in Gaza and Lebanon, analysts and officials say.
The International Criminal Court (ICC) stunned Israel on Thursday by issuing arrest warrants for Netanyahu and his former defense chief Yoav Gallant for alleged war crimes and crimes against humanity in the 13-month-old Gaza conflict. The bombshell came less than two weeks before Netanyahu is due to testify in a corruption trial that has dogged him for years and could end his political career if he is found guilty. He has denied any wrongdoing. While the domestic bribery trial has polarized public opinion, the prime minister has received widespread support from across the political spectrum following the ICC move, giving him a boost in troubled times.
Netanyahu has denounced the court's decision as antisemitic and denied charges that he and Gallant targeted Gazan civilians and deliberately starved them.
"Israelis get really annoyed if they think the world is against them and rally around their leader, even if he has faced a lot of criticism," said Yonatan Freeman, an international relations expert at the Hebrew University of Jerusalem.
"So anyone expecting that the ICC ruling will end this government, and what they see as a flawed (war) policy, is going to get the opposite," he added.
A senior diplomat said one initial consequence was that Israel might be less likely to reach a rapid ceasefire with Hezbollah in Lebanon or secure a deal to bring back hostages still held by Hamas in Gaza.
"This terrible decision has ... badly harmed the chances of a deal in Lebanon and future negotiations on the issue of the hostages," said Ofir Akunis, Israel's consul general in New York.
"Terrible damage has been done because these organizations like Hezbollah and Hamas ... have received backing from the ICC and thus they are likely to make the price higher because they have the support of the ICC," he told Reuters.
While Hamas welcomed the ICC decision, there has been no indication that either it or Hezbollah see this as a chance to put pressure on Israel, which has inflicted huge losses on both groups over the past year, as well as on civilian populations.
IN THE DOCK
The ICC warrants highlight the disconnect between the way the war is viewed here and how it is seen by many abroad, with Israelis focused on their own losses and convinced the nation's army has sought to minimize civilian casualties.
Michael Oren, a former Israeli ambassador to the United States, said the ICC move would likely harden resolve and give the war cabinet license to hit Gaza and Lebanon harder still.
"There's a strong strand of Israeli feeling that runs deep, which says 'if we're being condemned for what we are doing, we might just as well go full gas'," he told Reuters.
While Netanyahu has received wide support at home over the ICC action, the same is not true of the domestic graft case, where he is accused of bribery, breach of trust and fraud.
The trial opened in 2020 and Netanyahu is finally scheduled to take the stand next month after the court rejected his latest request to delay testimony on the grounds that he had been too busy overseeing the war to prepare his defense.
He was due to give evidence last year but the date was put back because of the war. His critics have accused him of prolonging the Gaza conflict to delay judgment day and remain in power, which he denies. Always a divisive figure in Israel, public trust in Netanyahu fell sharply in the wake of the Oct. 7, 2023 Hamas assault on southern Israel that caught his government off guard, cost around 1,200 lives.
Israel's subsequent campaign has killed more than 44,000 people and displaced nearly all Gaza's population at least once, triggering a humanitarian catastrophe, according to Gaza officials.
The prime minister has refused advice from the state attorney general to set up an independent commission into what went wrong and Israel's subsequent conduct of the war.
He is instead looking to establish an inquiry made up only of politicians, which critics say would not provide the sort of accountability demanded by the ICC.
Popular Israeli daily Yedioth Ahronoth said the failure to order an independent investigation had prodded the ICC into action. "Netanyahu preferred to take the risk of arrest warrants, just as long as he did not have to form such a commission," it wrote on Friday.
ARREST THREAT
The prime minister faces a difficult future living under the shadow of an ICC warrant, joining the ranks of only a few leaders to have suffered similar humiliation, including Libya's Muammar Gaddafi and Serbia's Slobodan Milosevic.
It also means he risks arrest if he travels to any of the court's 124 signatory states, including most of Europe.
One place he can safely visit is the United States, which is not a member of the ICC, and Israeli leaders hope US President-elect Donald Trump will bring pressure to bear by imposing sanctions on ICC officials.
Mike Waltz, Trump's nominee for national security advisor, has already promised tough action: "You can expect a strong response to the antisemitic bias of the ICC & UN come January,” he wrote on X on Friday. In the meantime, Israeli officials are talking to their counterparts in Western capitals, urging them to ignore the arrest warrants, as Hungary has already promised to do.
However, the charges are not going to disappear soon, if at all, meaning fellow leaders will be increasingly reluctant to have relations with Netanyahu, said Yuval Shany, a senior fellow at the Israel Democracy Institute.
"In a very direct sense, there is going to be more isolation for the Israeli state going forward," he told Reuters.



Borderless Europe Fights Brain Drain as Talent Heads North

Eszter Czovek, 45, packs up her house as she moves to Austria, in Budapest, Hungary, October 28, 2024. REUTERS/Bernadett Szabo
Eszter Czovek, 45, packs up her house as she moves to Austria, in Budapest, Hungary, October 28, 2024. REUTERS/Bernadett Szabo
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Borderless Europe Fights Brain Drain as Talent Heads North

Eszter Czovek, 45, packs up her house as she moves to Austria, in Budapest, Hungary, October 28, 2024. REUTERS/Bernadett Szabo
Eszter Czovek, 45, packs up her house as she moves to Austria, in Budapest, Hungary, October 28, 2024. REUTERS/Bernadett Szabo

Until recently aerospace engineer Pedro Monteiro figured he'd join many of his peers moving from Portugal to its richer European neighbors in the quest for a better-paid job once he completes his master's degree in Lisbon.
But tax breaks proposed by Portugal's government for young workers - up to a temporary 100% income tax exemption in some cases - plus help with housing are making him think twice.
"Previous governments left young people behind," said Monteiro, 23, who is studying engineering and industrial management at the Higher Technical Institute in the Portuguese capital. "The country needs us and we want to stay but we need to see signs from the government that they are implementing policies that will help."
Monteiro cites in particular the cost of buying or renting a home amid a housing crisis aggravated by the arrival of wealthy foreigners lured by easy residency rights and tax breaks, Reuters said.
He is doubtful the government's new measures will be enough.
"Some of my friends are now working abroad and earn substantially more money... and have better career development opportunities," he said. "I'm a little bit skeptical concerning my job opportunities here in Portugal."
Portugal is the latest country in Europe to seek to tackle a brain drain holding back its economy. Tax breaks for young workers in the budget currently going through parliament will take effect next year and could benefit as many as 400,000 young people at an annual cost of 525 million euros.
Talent flight to wealthier countries of the north is a problem Portugal shares with several others in southern and central Europe, as workers take advantage of freedom of movement rules within the trade bloc. Countries including Italy have tried other schemes to counter the flight, with mixed results.
By exacerbating regional labor shortages and depriving poorer countries of tax revenues, it is yet another hurdle for the EU as it tries to improve its ebbing economic growth while addressing population decline and lagging labor productivity.
Donald Trump's victory in US elections this month raises the stakes, with the risk of across-the-board trade tariffs on European exports of at least 10% - a move that economists say could turn Europe's anaemic growth into outright recession.
About 2.3 million people born in Portugal, or 23% of its population, currently live abroad, according to Portugal's Emigration Observatory. That includes 850,000 Portuguese nationals aged 15-39, or about 30% of young Portuguese and 12.6% of its working-age population.
More concerning still is that about 40% of 50,000 people who graduate from universities or technical colleges emigrate each year, according to a study by Business Roundtable Portugal and Deloitte based on official statistics, costing Portugal billions of euros in lost income tax revenue and social security contributions.
DEMOGRAPHIC HELL
"This is not a country for young people," said Pedro Ginjeira do Nascimento, executive director of Business Roundtable Portugal, which represents 43 of the largest companies in the nation of 10 million people. "Portugal is experiencing a true demographic hell because the country is unable to create conditions to retain and attract young talent."
Internal migration within the EU is partly driven by the disparity in wages between its member states. Some economic migrants also say they are looking for better benefits such as pensions and healthcare and less rigid, hierarchichal structures that give more responsibility to those in junior roles.
Concerns are mounting over the long-term viability of Europe's economic model with its rapidly ageing population and failure to win substantial shares of high-growth markets of the future, from tech to renewable energy.
Presenting a raft of reform proposals aimed at boosting local innovation and investment, former European Central Bank chief Mario Draghi said in September the region faced a "slow agony" of decline if it did not compete more effectively.
Eszter Czovek, 45, and her husband are moving from Hungary to Austria, where workers earn an average 40.9 euros ($29.95) per hour compared to 12.8 euros per hour in Hungary, the largest wage gap between neighboring countries in the EU.
The number of Hungarians living in Austria increased to 107,264 by the beginning of 2024 from just 14,151 when Hungary joined the EU.
Czovek's husband, who works in construction, was offered a job in Austria, while she has worked in media and accounting at various multinationals. She cited better pay, pensions, work conditions and healthcare as motives for moving. She also mentioned her concern over the political situation in Hungary, which she fears might join Britain in leaving the EU.
"There was a change of regime here in 1989 and 30 years later we are still waiting for the miracle that will see us catch up with Austria," Czovek said of the revolution over three decades ago that ended communist rule in Hungary.
Since Brexit, the Netherlands has replaced Britain as a preferred destination for Portuguese talent while Germany and Scandinavian countries are also popular.
Many Europeans still head to the United States in search of better jobs - about 4.7 million were living there in 2022, according to the Washington-based Migration Policy Institute, which nonetheless notes a long-term decline since the 1960s.
In 2023, 4,892 Portuguese emigrated to the Netherlands, surpassing Britain for the first time, which in 2019 received 24,500 Portuguese.
At home, they face the eighth-highest tax burden in the Organization for Economic Co-operation and Development (OECD) even as house prices rose 186% and rents by 94% since 2015, according to property specialists Confidencial Imobiliario.
A single person in Portugal without children earned an average of 16,943 euros after tax in 2023 compared to 45,429 euros in the Netherlands, according to Eurostat.
Portugal will offer under 35s earning up to 28,000 euros a year a 100% tax exemption during their first year of work, gradually reducing the benefit to a 25% deduction between the eighth and tenth years.
Young people would also be exempted from transaction taxes and stamp duty when buying their first home as well as access to loans guaranteed by the state and rent subsidies.
"We are designing a solid package that tries to solve the main reasons why the young leave," Cabinet Minister Antonio Leitao Amaro said in an interview with Reuters.
'THINGS WON'T CHANGE'
Leitao Amaro said he did not know for sure if the tax breaks would work but that his government, which came into office in April, had to try something new.
"If we don't act ambitiously, things won't change and Portugal will continue down this path," he said.
The Italian government has already found that tax breaks used as incentives are costly and open to fraud.
In January, Italy abruptly curtailed its own scheme that was costing 1.3 billion euros in lost tax revenue, even as it lured tech workers such as Alessandra Mariani back home.
Before 2024, returners were offered a 70% tax break for five years, extendable for another five years in certain circumstances. Now, it plans to offer a slimmed-down scheme targeting specific skills after it attracted only 1,200 teachers or researchers - areas where Italy has a particular shortage.
Mariani said the incentives were key to persuading her to return to Milan in 2021 by allowing her to maintain the same standard of living she enjoyed in London.
"Had the opportunity been the same without the scheme, I would not have done it at all," said Mariani, now working at the Italian arm of the same large tech company.
With her tax breaks poised to be phased out by 2026 unless she buys a house or has a child, Mariani faces a drop in salary and she said she's once again eyeing the exit door.