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2 Israeli tech firms to pull funds out of the country, citing risk posed by Netanyahu government
(JTA) — The Israeli founder of an international payroll company that provides services to Toyota and Microsoft has announced that she will move her company’s money out of Israel over concerns about its new right-wing government.
Eynat Guez, a co-founder and CEO of Papaya Global, which was valued at $3.7 billion in 2021, made the announcement Thursday on Twitter. Her announcement came the morning after Israeli Prime Minister Benjamin Netanyahu defended his government’s proposed judiciary reforms and after weeks of mounting warnings, from within Israel and abroad, that the reforms could harm Israel’s credit rating. Netanyahu dismissed those warnings on Wednesday as overblown.
“Following Prime Minister Netanyahu’s statements that he is determined to pass reforms that will harm democracy and the economy, we made a business decision at Papaya Global to withdraw all of the company’s funds from Israel,” Guez tweeted on Thursday morning. “In the emerging reform, there is no certainty that we can conduct international economic activity from Israel. This is a painful but necessary business step.”
Guez has emerged as a leader within Israel’s vaunted tech sector in protests against the new government, speaking at a rally of tech workers in Tel Aviv that took place last weekend amid protests around the country. The rallies are largely focused on the governing coalition’s judiciary proposals, including legislation that would allow the Knesset, Israel’s parliament, to overrule Supreme Court decisions.
In her speech, Guez said she had been encouraged to raise money for Papaya Global from the United States, a common step for Israeli firms, but had resisted because she wanted to live in Israel and raise her children there, the way her parents had after immigrating from their birthplaces in Morocco and Tunisia.
She also noted that $54 billion in capital from abroad had been invested in Israeli companies in the past three years. “Without a democracy, we’d never have these $54 billion,” she said. “And not the tens of thousands of employees who joined the high-tech sector in recent years.”
Guez said foreign investors had been calling with concern about whether Israel’s democracy was crumbling. “Just like in Brazil, Venezuela and Hungary, no leading investor or financial institute will let his billions stay in a country with a crumbling democracy,” she said. She added, “Let’s say this loud and clear: Startup Nation without a democracy cannot stand.”
A second, smaller Israeli tech company is also moving its bank accounts out of Israel, according to the Israeli tech publication Calcalist. The firm, Disruptive AI, raises money for artificial intelligence startups and manages $250 million in funds.
Guez did not further explain Papaya’s business decision on Thursday and how it would affect the company or its employees. The company, which says it manages more than $3 billion in payroll for companies in 160 countries, entered the ranks of Israel’s “unicorn” tech firms in early 2021, meaning that it was valued at over $1 billion. It raised $250 million against a valuation of $3.7 billion later that year.
Israel’s tech sector has been experiencing the same downturn as the global tech sector, in which sweeping layoffs have been taking place in recent weeks. Last year was the worst since 2014 for the number of Israeli companies being acquired or going public.
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The post 2 Israeli tech firms to pull funds out of the country, citing risk posed by Netanyahu government appeared first on Jewish Telegraphic Agency.
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‘Jews are welcome, Zionists are not’: Is a Zionist ban at a restaurant legal?
Sap Sua, a Vietnamese restaurant in Boulder, Colorado, was one of Emily Lanigan’s favorite restaurants. She even celebrated her 44th birthday there in June. So Lanigan was stunned when the restaurant posted this since-deleted message on Instagram in September: “Jews are welcome, Zionists are not.”
Lanigan, a former synagogue president, identifies as a Zionist, which she defines as the Jewish right of self-determination. Was she really no longer welcome at the place where she had received a complimentary dessert just months before?
She wondered if the restaurant had a different definition of Zionism, she said, and thought maybe reaching out and offering to have an in-person discussion could clear things up.
“Being a Zionist does not mean I do not also believe in the freedom and autonomy of Palestinians,” Lanigan said she commented on Instagram. “You and I are not so far apart.”
But Sap Sua’s owner, Anthony “Ni” Nguyen, doubled down: “As you clearly saw, the full statement was ‘Jews are welcome. Zionists are not.’ Jews are a protected class, and all Jews are welcome,” Nguyen wrote in messages to Lanigan reviewed by the Forward. “Zionism is a political ideology, like Nazism.”
Nguyen’s response to Lanigan implied the law was on his side. He could ban “Zionists,” it seemed, so long as he let in Jews who shared his views about Israel.
Legally speaking, Nguyen was partially correct. Neither federal civil rights law nor Colorado law prohibits businesses from refusing service based on customers’ political beliefs — meaning turning someone away based solely on their political support for Israel could be allowed.
But the line gets murkier when “Zionist” is used as a stand-in for Jewish or Israeli identity, which can violate laws prohibiting discrimination based on religion or national origin.
The distinction matters not only for Sap Sua, as spaces from coffee shops to book festivals to concert venues make disavowing Israel a condition of entry or participation. The troubling practice raises a thorny question: How should the law distinguish between excluding someone because of their political beliefs and excluding them because of who they are?
The right to exclude?
Sap Sua was not the first business to declare itself off-limits to Zionists with no legal consequences. In Utah, after a bar called Weathered Waves declared “no Zionists allowed” in 2024, the attorney general found no evidence of legal wrongdoing. (Weathered Waves later closed over a dispute with its landlord.)
But that doesn’t mean “Zionist” bans are always legal. According to Richard Katskee, a professor of law at Duke University with expertise in public accommodation law, the legality depends on how the ban is enforced.
Does the business ask only Jewish or Israeli customers to disclose their views? Does it make assumptions about the politics of customers wearing kippahs? If Jewish customers are being singled out, Katskee said, that would make a finding of illegal discrimination more likely.
Omer Wiczyk, senior counsel at the Brandeis Center, told the Forward that two cases he’s currently litigating cross that line. At a coffee shop in Oakland, California, a customer wearing a Star of David baseball cap was asked on video if he was a Zionist and told to leave. At an eyebrow salon in Northern Virginia, a customer was kicked out after disclosing she was Israeli-American.
Businesses “cannot turn a customer’s identity into objectionable politics, and then invoke that to justify their exclusion,” Wiczyk told the Forward. “Being Israeli is not a political issue. Being a Jew is not a political issue. It’s who you are.”
But if a business required every customer, regardless of their identity, to affirm a particular political position on Israel before receiving service, that could be legal, Katskee said — though enforcing such a policy fairly would inevitably prove difficult in practice.
“It might be legal, like putting up a sign saying ‘Republicans only’ or ‘Democrats only,’” Katskee said.
Jenin Younes, legal director of the American-Arab Anti-Discrimination Committee, argues that businesses have some latitude to refuse service based on customers’ politics. The ADC is currently making that case on behalf of Poetica Coffee, which is fighting a Department of Justice investigation into its decision to publicly bar Rep. Dan Goldman over his support for Israel.
In Goldman’s case, Younes said, his public profile and easily searchable voting record help support the idea that the coffee shop targeted him for his political views.
“It’s harder to make the argument that ‘No, this was really about just not letting Jewish people in’ — because he’s a public figure,” Younes said. “He’s said what he thinks on these issues.”
Even Goldman himself said that the coffee shop incident did not warrant a civil rights investigation because of his status as a public figure.
Younes argues that the same principle applies to situations unrelated to Israel and Zionism.
In 2018, for example, the owner of a Virginia restaurant kicked out White House press secretary Sarah Huckabee Sanders citing the Trump administration’s “inhumane and unethical” policies. The restaurant faced social backlash, but no legal consequences.
And last year, a Martha’s Vineyard farmers’ market stand refused to sell lawyer Alan Dershowitz pierogi, citing his legal defense of Jeffrey Epstein and other men accused of sexual assault. Dershowitz threatened legal action, but it appears he never actually filed suit.
“In my opinion, businesses should have the right to exclude people whose views it doesn’t like,” Younes said. “And by the way, I would apply this in the other context: If there’s a pro-Israel coffee shop owner and they wanted to say, ‘We don’t want anyone wearing a pro-Palestine pin in here,’ I think they have that right.”
The law’s limits
Whether businesses have the legal right to exclude certain customers is a different question than whether they should.
Such bans can end up holding ordinary Jews responsible for the actions of the Israeli government — with the misguided idea that denying them a meal or a cup of coffee will somehow advance the Palestinian cause.
And since “Zionist” means different things to different people, using the label as a litmus test will almost inevitably lead to erroneous assumptions about peoples’ views.
In cases where the law is not a remedy, the free market may be. Businesses that turn away “Zionists” must be so committed to their beliefs that they are willing to refuse a paying customer, risking boycotts and reputational damage.
At the same time, some businesses may believe the publicity will draw in new clientele. Karimi Brows, which turned away the Israeli-American customer, boasted that it gained 40,000 TikTok followers in the month after the incident.
For its part, Sap Sua appeared to backtrack amid intense public pressure, posting to Instagram that it would welcome “every guest who walks through our doors.” (Sap Sua did not respond to the Forward’s request for comment.)
But for Lanigan, the damage was done.
“It was one of my favorite restaurants,” Lanigan told the Forward. “But I will never set foot in that place again.”
The post ‘Jews are welcome, Zionists are not’: Is a Zionist ban at a restaurant legal? appeared first on The Forward.
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Explainer: Gadi Eisenkot’s four conditions for forming Israel’s next government
(JTA) — JERUSALEM – Israeli President Isaac Herzog tasked Gadi Eisenkot on Sunday with forming Israel’s next government, giving him up to six weeks to assemble a coalition with a total of 61 seats out of 120 in Israel’s parliament, the Knesset.
If he fails to do so, then the president can give another Knesset member the opportunity; most likely this will be incumbent Prime Minister Benjamin Netanyahu. For his part, Netanyahu, has urged Eisenkot to join him in an emergency national unity government that will keep Israel strong against ongoing threats.
Eisenkot has responded that the “national emergency government” he will form will comprise the “four Zionist parties” of the change bloc – his own Yashar Party, B’Yachad headed by former prime ministers Naftali Bennett and Yair Lapid, Avigdor Liberman’s Yisrael Beitenu Party and the Democrats under Yair Golan.
He also said he would welcome “parties and Knesset members who support Yashar’s four principles” to join the coalition.
At the President’s Residence in Jerusalem on Sunday, Eisenkot said he would be sending out formal invitations as soon as possible “to every Knesset faction, calling on all their members, both as parties and as individuals, to take part in forming the government and bringing it to its swearing-in.
“The rule is simple,” he added. “If you are prepared to sign on to the four principles I have set out, you are potential partners in a national emergency government under my leadership.”
Throughout his campaign, and particularly since the Oct. 27 election, Eisenkot has emphasized these four principles as the basis for forming the next government. But what are they exactly? And who, out of the other 11 parties, will be able to accept them and join his coalition?
1) Recognition of the State of Israel as a Jewish and democratic state.
Eisenkot wants to define his coalition as a government that is committed to Israel’s Jewish national identity and to democracy, not simply an alliance united by opposition to Netanyahu.
Any party wanting to join must accept Israel’s identity as the national home of the Jewish people first. The requirement has historically been contentious for Israel’s two Arab parties, who represent 19 Knesset members.
Parties must also accept the country’s democratic institutions, which uphold equality and rights for all citizens and prioritize the rule of law.
This means parties, such as the far-right and the ultra-Orthodox, that, as members of the outgoing government, have been pushing to overhaul the country’s judiciary – a key institution in Israel’s system of democratic checks and balances – might think twice about joining.
2) Acceptance of the values of the Declaration of Independence.
Israel’s Declaration of Independence, proclaimed and signed on May 14, 1948, is a foundational document that has helped shape the country’s constitutional principles, although Israel does not have a single, formal written constitution.
In it, the signatories laid out their vision for Israel, including the historical ties the Jewish people have to the land of Israel and its place as a safe haven for Jews around the world who are in trouble.
For Eisenkot, the emphasis appears to be on one particular section that declares: “The State of Israel will foster the development of the country for the benefit of all its inhabitants; it will be based on freedom, justice and peace as envisaged by the prophets of Israel; it will ensure complete equality of social and political rights to all its citizens, irrespective of religion, race or sex; it will guarantee freedom of religion, conscience, language, education and culture; and it will safeguard the Holy Places of all religions; and it will be faithful to the principles of the Charter of the United Nations.”
By embracing the Declaration of Independence, Eisenkot is recognizing the place of Israel’s minority groups, highlighting their “full and equal citizenship.” A point mentioned twice in the declaration.
The declaration also reaffirms that Israel is a country seeking peace, rather than endless conflict, at a time when Netanyahu has recently been criticized over his handling of the country’s wars on multiple fronts.
3) Mandatory service for all — military, national, and civilian, to strengthen the IDF and expand its ranks.
Including this condition for joining the government is a direct message to the ultra-Orthodox parties, at least one of which is considering supporting Eisenkot’s coalition.
United Torah Judaism, which has been aligned closely with Netanyahu’s bloc for at least the past two decades, on Thursday refused to recommend the prime minister as Israel’s next leader. Instead, the party, which holds seven seats, abstained from recommending any candidate.
Both UTJ and the second ultra-Orthodox party, Shas, have resisted efforts that would include ultra-Orthodox young men studying in yeshiva under a universal draft law requiring all eligible Israelis to perform military service.
Previous exemption laws have expired, and Israel’s Supreme Court has ruled that the state’s blanket exemption of yeshiva students from military service has no legal basis and violates principles of equality before the law.
By including this condition, Eisenkot is telling the ultra-Orthodox – and even the Arab community, most of whose members are also exempt from mandatory military service – that everyone in Israel must do their part, whether through military service or some type of national or community service.
This stipulation could either keep the ultra-Orthodox out of the government, even though Eisenkot’s partners have expressed willingness to allow their participation. Or it could force them to be more flexible on an issue that until now they have appeared unrelenting.
4) Recognition of Hamas as a terrorist organization and commitment to dismantling its military and governing power.
Leaders of the two Arab parties, the Islamist Ra’am Party and the more nationalist Joint List, have refused to make this statement out loud.
Ra’am leader Mansour Abbas, who has repeatedly condemned the Oct. 7 attack, has said he does have a clear position on this but refuses to state it publicly for several reasons ranging from concerns about his personal safety to his ties to the Muslim Brotherhood, to which Hamas is also affiliated. He has also questioned why Arab politicians are required to pass loyalty tests that are not applied equally to Jewish politicians.
When President Herzog pressed him on the matter last week, Abbas said: “I have an unequivocal answer, but leave me space to be a bridge. To also influence the other side.” He argued that maintaining channels of communication with Palestinians requires him not to adopt language that would immediately alienate them.
For the Joint List, the continued refusal to call Hamas a terror group appears to reflect the view that Hamas is part of the broader Palestinian political movement. Some of its members argue that labeling it a terrorist organization risks delegitimizing Palestinian political aspirations as a whole.
Members of the 11-member faction have condemned the Oct. 7 massacre, but are unlikely to accept this particular condition because it could be used to justify Israel’s military campaigns in Gaza and the West Bank. Its leaders also want to preserve their credibility among Palestinian voters, many of whom see the conflict through the lens of occupation and Palestinian national rights.
This article originally appeared on JTA.org.
The post Explainer: Gadi Eisenkot’s four conditions for forming Israel’s next government appeared first on The Forward.
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Photos: Pro-Israel counter-protesters overwhelm anti-Zionist bike rally in Philadelphia, where police arrest 3
Hundreds of pro-Israel counter-protesters gathered around Philadelphia’s Rittenhouse Square Sunday morning ahead of a bike rally targeting six Jewish-owned restaurants. There were about 300 anti-Zionist protesters and about 200 pro-Israel counterprotesters, police estimated. Rally organizers said the timing — just before the 88th anniversary of Kristallnacht, when Nazis attacked Jewish shops and homes — was coincidental.
Three people were arrested Sunday, according to police. Pennsylvania Gov. Josh Shapiro, who is Jewish, said a few hours after the crowd had dispersed, “In the midst of blatant antisemitic targeting of Jewish-owned restaurants on the anniversary of Kristallnacht, the City of Brotherly Love showed up to support our neighborhood businesses and prove once again that hate has no place in our Commonwealth.”
The post Photos: Pro-Israel counter-protesters overwhelm anti-Zionist bike rally in Philadelphia, where police arrest 3 appeared first on The Forward.
















