"The public regards the stability clause as though the state surrendered to the gas companies. In fact, the state needs stability, perhaps even more than we do. Without stability, there can be no development of the Leviathan reserve or other gas reserves, and if there's no development of the gas reserves, it's the state that loses," a senior gas company executive told "Globes", commenting on the hearing in the High Court of Justice on the agreement between the State of Israel and the gas companies.
The executive also commented on the most controversial section of the agreement, under which the state promises to make no substantial regulatory changes in the gas industry in the next 10-15 years, saying, "This is perhaps the hardest section to digest, but it's also the most vital section."
The same source said he welcomed Prime Minister Benjamin Netanyahu's testimony before the High Court of Justice yesterday. "The fact that this is the first time a prime minister has appeared before the High Court of Justice ought to indicate to the judges that the gas agreement is not just a gas agreement, but that it dramatically affects the Israeli economy and Israel's diplomatic relations with neighboring countries."
He expressed optimism about the judges' decision, saying, "It's not that we're anxious. We believe that the judges understand that the agreement shouldn't be touched, certainly not the stability clause, which has drawn the main criticism from the petitioners against the agreement," he said, "If the judges decide to change the stability clause, then there's no agreement."
That sounds like a threat.
"It's not a matter of threat or no threat. The state understands this itself. No entrepreneur will invest $7 billion if he fears that in a year's time the state could change the rules of the game. The time for games is over. This is one of the only clauses that we would not be prepared to forego."
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2016
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