JERUSALEM - Israel’s president floated a compromise plan on Sunday to spare the country what he described as a “constitutional collapse” and possible violence, over a contested judicial overhaul sought by the hard-right government of Prime Minister Benjamin Netanyahu.

The rare prime-time television speech by President Isaac Herzog, whose figurehead role is designed to unite an often fractious society, included an appeal to coalition lawmakers to hold off on initial legislation steps in parliament which some had planned to begin this week.

But Justice Minister Yariv Levin poured cold water on the idea of postponing, saying in a statement responding to Mr Herzog’s speech that while he did not oppose dialogue, this “should not be linked to progress in the legislation proceedings”.

Israel has only one legislative body and in such a parliamentary system, the executive can exert enormous control, leaving only the courts to rein in perceived abuses of minorities and human rights. The concern of many opponents is that the proposed changes would make Israel far less open and less appealing as a place to invest, increasing the influence of religious fundamentalists. 

All of this is happening as violence among Israelis and Palestinians has increased in Jerusalem and the West Bank. The security cabinet announced plans late on Sunday for the legalisation of nine settlement outposts and an increased police presence in the occupied areas as an answer to Palestinian attacks on Israeli civilians there. 

The centre-left opposition, accusing Mr Netanyahu of seeking greater control over the court system even as he himself is being tried on corruption charges, have mounted demonstrations and called for nationwide protest strikes at the Knesset on Monday.

The Prime Minister - who denies wrongdoing in his trial - says the reforms are aimed at restoring balance between Israeli authorities.

In his speech to the nation, Mr Herzog warned: “We are on the brink of constitutional and social collapse. I feel - we all feel - that we are barely a moment away from a collision - and even from a violent collision...

“The absence of dialogue is tearing us apart from within, and I’m telling you loud and clear: This powder keg is about to explode. This is an emergency.”

There was a similar - if more veiled - call by the White House, which generally shies away from discussing Israel’s internal affairs.

“The genius of American democracy and Israeli democracy is that they are both built on strong institutions, on checks and balances, on an independent judiciary,” US President Joe Biden said in a statement quoted by the New York Times on Sunday.

“Building consensus for fundamental changes is really important to ensure that the people buy into them so they can be sustained.”

Recent polls have shown relatively little support for the proposed judicial changes as they stand.

Mr Herzog urged immediate talks between the government and the opposition, based on five principles. These would include legislating a process for enacting Israel’s quasi-constitutional basic laws and barring any Supreme Court interference in them.

Another principle would more clearly define the authority of the Supreme Court, which the government has accused of over-reach. Mr Herzog also called for a shake-up of the committee for selecting justices - but differed with the government on the format, arguing that “no side should have a built-in majority”.

Opposition head Yair Lapid said that Mr Herzog’s proposal was a worthy one but that until understandings are reached, “the struggle will not be halted and the protest will not stop”.

Israel’s five main banks, Bank Hapoalim, Bank Leumi, Israel Discount Bank, Mizrahi-Tefahot and First International Bank of Israel, in a rare such statement, voiced support for Mr Herzog’s bid to reach broad understandings, which they said would benefit Israel’s economy.

Legal experts, economists and former security and economic officials, who include Netanyahu confidants and appointments, have warned his government’s judicial proposals could have serious diplomatic and economic fallout. REUTERS, BLOOMBERG