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During my family’s recent visit to Israel, we spent time with my brother in Haifa, who gave one of my daughters a “Guardians of Democracy” T-shirt worn by protesters who oppose the current government’s plans to constrain judicial power. We also spent time with my sister in Gush Etzion, a bloc of settlements near Jerusalem, who casually referred to such protesters as “anarchists.”

Those characterizations, each misleading in its own way, reflect a disagreement about the proper role of courts in a democracya debate that echoes familiar arguments in the United States. Israel’s version of that controversy, which has featured mass demonstrations that Prime Minister Benjamin Netanyahu sees as evidence of a nascent “civil war,” is flaring up again as the Knesset, Israel’s parliament, considers a bill that would bar the Israeli Supreme Court from blocking legislation based on a lack of “reasonableness.” That proposal, while less radical than bills that would virtually eliminate judicial review, encapsulates the issues raised by the determination of Netanyahu’s coalition partners to restrict the court’s authority.

Those issues, which go to the heart of legislative and judicial legitimacy, were illuminated 16 years ago by an exchange between Richard Posner, a now-retired judge on the U.S. Court of Appeals for the 7th Circuit, and Barak Medina, a senior lecturer in law at the Hebrew University in Jerusalem. Their debate centered on the judicial philosophy of Aharon Barak, who served as a justice of the Israeli Supreme Court from 1978 to 1995 and as its president from 1995 to 2006. That period included the “constitutional revolution” in which the court took on the task of enforcing limits imposed by Israel’s “basic laws.”

Barak is the bte noire of the right-wing legislators in Netanyahu’s coalition, who see themselves, contrary to their opponents’ take, as defenders of democracy against judicial usurpation. Barak “has brought disaster on Israel,” saysJustice Minister Yariv Levin. “His path stands in contrast to democracy. To him, judges are preferable to the people’s elected officials.”

In a 2007 review of Barak’s bookThe Judge in a Democracy, Posner offered a similar critique, portraying the Israeli jurist as an “enlightened despot” and “legal buccaneer” who overrode government policy based on his personal preferences. “Barak does not attempt to defend his judicial practice by reference to orthodox legal materials; even the ‘Basic Laws’ are mentioned only in passing,” Posner wrote in The New Republic. “His method, lacking as it does any but incidental references to enacted provisions, may seem the method of the common law (the judge-made law that continues to dominate many areas of Anglo-American law, such as contracts and torts), except that common-law rules are subject to legislative override, and his rules are not. The significance of this point seems to elude him. He takes for granted that judges have inherent authority to override statutes. Such an approach can accurately be described as usurpative.”

In particular, Posner took issue with Barak’s deployment of vague abstractions such as “reasonableness,” “justice,” and “equality,” which Posner called “as empty as they are lofty,” to second-guess the choices of elected representatives. As Posner saw it, that “lawless” method invited unjustified interference with the democratic process.

To illustrate the arbitrariness he saw as characteristic of Barak’s approach, Posner cited “a ruling made during the Gulf war in 1991 requiring the Israeli army to distribute more gas masks to residents of the West Bank.” Defending that decision, Barak said: “We did not intervene in military considerations, for which the expertise and responsibility lie with the executive. Rather, we intervened in considerations of equality, for which the expertise and responsibility rest with the judiciary.”

Although the basic laws do not explicitly mention equality, the Israeli Supreme Court has deemed that principle implicit in the “human dignity” protected by the 1992 basic law. Yet Barak’s book “strongly commends the balancing of competing interests as a technique of judicial decision-making,” Posner said, “implying that in the gas-mask case the court should have balanced against considerations of equality whatever military reasons the army gave for distributing fewer gas masks on the West Bank than in Israel proper, such as that Iraq was more likely to aim its missiles at Jews than at Arabs.” The general test, according to Barak, is whether “a reasonable person responsible for security would be prudent to adopt the security measures that were adopted.”

Medina’s rejoinder to Posner, published the same year in the Harvard International Law Journal, faulted the American judge for misrepresenting the Israeli system of government. Contrary to Posner’s assertion that the Israeli Supreme Court’s decisions are not “subject to legislative override,” Medina noted, the Knesset can change the basic laws at will, typically by a simple majority vote. Somewhat contradictorily, Medina also objected to Posner’s assertion that “Israel does not have a constitution.” He noted that “the constitutional assembly chosen to draft a Constitution decided, soon after its election, to also serve as the legislature,” and “it established explicitly that all future Knessets will have ‘all the powers’ given to the First Knesset.”

Treating the basic laws as a constitution, Medina argued, “is based upon the recognition of the importance of judicial review in ensuring respect for basic human rights” and “protecting the fundamental principles of the State of Israel as a democratic and Jewish state.” He said that “appropriate compromise” also recognizes that “it is best to base judicial review upon explicit consent of the people, via its representatives in Knesset.”

Medina emphasized that the Knesset had accepted judicial review based on the basic laws. “The Knesset did not amend the Basic Laws in response to the Court’s decision regarding the ‘constitutional revolution,’ and refrained from limiting the Court’s power to practice judicial review over legislation,” he wrote. “Moreover, in recent years, the Knesset usually examines proposed legislation to ensure its accordance with the Basic Laws, recognizing the supremacy of the provisions of the Basic Laws over ‘regular’ legislation. The Knesset accepted, by a clear consensus, the Court’s decisions in which it voided provisions in legislation which violated the Basic Laws.”

As demonstrated by the ongoing clash over judicial review, that “clear consensus” has broken down. And the fact that the basic laws were enacted by the national legislature, which retains the power to alter them, makes those ground rules strikingly different from the U.S. Constitution, which by design is very difficult to change. While Medina surely is correct that judicial review is essential in “ensuring respect for basic human rights,” empowering the legislature to determine the content of those rights obviously makes them less secure than they would be in a system where the amendment process is more arduous and complicated. That is especially true under a governing scheme like Israel’s, which lacks the checks and balances achieved through an autonomous lower level of government and separation of legislative and executive powers.

In this context, judicial review is both more important and more precarious than it is in the United States. At the same time, the legitimacy of that power is open to question when courts go beyond interpreting and applying the law. According to Posner, that is what Barak’s approach demands.

Medina argued that Posner grossly exaggerated the extent to which the Israeli Supreme Court interfered with executive and legislative choices. He noted that the government and the Knesset had made many momentous decisionsincluding “the economic program of 1985, the expansion of the settlements in the Occupied Territories, the invasion into Lebanon and the withdrawal from Lebanon, the Oslo peace Accords, the policy of privatization, the increases and subsequent decreases in stipeds for families with children, the disengagement from Gaza, Operation Desert Shield against Palestinian terror organizations, the construction of the Separation Wall, changes in Israel’s immigration policy, [and] the policy adopted in the Second Lebanon War”without “significant intervention by the Court.”

Medina added that the court had not responded to “governmental inactions” in areas such as “measures to close widening economic gaps in society and the deepening of poverty,” “discrimination by private agents against Arab citizens,” and “delays in decisions to desalinate water and to recycle materials.” He noted that the court “did not instruct the Government to adopt a policy of affirmative action in order to contend with inequality,” “did not instruct the State to set up soup kitchens or subsidize lifesaving drugs,” “did not prevent discriminatory security checks of Arab citizens in airports,” and “did not even examine the constitutionality of the decision not to draft Arabs into the Israel Defense Forces.”

While some of these policies raise issues that are plausibly related to provisions of Israel’s basic laws and/or resemble constitutional claims that might be brought in U.S. courts, many of them seem far afield from such concerns. Medina nevertheless implied that the Israeli Supreme Court could have intervened in all of these areas, including large chunks of social and economic policy, but chose not to do so, perhaps because it worried about the potential for the sort of political backlash it now faces. It is precisely this open-endedness to which Posner objected: When judges reject or mandate government policies without “reference to orthodox legal materials,” he argued, they are usurping the role of legislators.

Medina did not really have a response to that objection, except to suggest that judges unavoidably act as legislators while pretending otherwise, a point he said Posner’s own preferred judicial method concedes. “According to [Posner’s] philosophy, a judge should ignore deontological limitations, for instance the recognition of values such as the dignity of man or tolerancea view which is in line with his critique of Barak,” Medina wrote. “However, Posner does not maintain that morality is irrelevant for judicial decision. In fact, the opposite is true: Posner believes that the judicial decision should be basedentirelyupon a moral approach that he calls ‘legal pragmatism.'”

Under that approach, Medina said, “a judge should render his decision by calculating the anticipated social ramifications of the application of each of the possible interpretations in the given case (though the nature of the calculation is unclear). Even if one were to ignore the difficulties in implementing such an eclectic approach, it is clear that this approach conforms with the position that a judge’s decision should ensure the greatest harmony between the law and (a certain definition of) the social good. The fact that Posner believes that the correct moral approach is consequentialism (and not deontology) does not make his approach any more legitimate than that which Barak espouses; thus his harsh critique of Barak’s approach is astounding.”

Even by Medina’s account, however, legal pragmatism comes into play when a judge chooses between “possible interpretations” of the law, which requires an intelligible principle that arguably can be applied in different ways. According to the basic law that the Knesset enacted in 1992, for example, “every person has a right to privacy and to intimacy.” That right includes restrictions on searches of “private premises” and protection for “the confidentiality of conversation” and of “writings or records.” On its face, that guarantee is broader than the U.S. Constitution’s privacy protections, and it is clearly relevant in search and seizure cases.

Medina mentioned various other ways in which the basic laws have been construed to protect “fundamental rights of the individual.” He noted decisions “voiding the government’s decision to prevent the participation of certain parties and candidates in elections,” “enforcing the prohibition against discrimination against Arab citizens in the distribution of state land,” “enforcing the prohibition against discrimination against women in a variety of contexts,” “protecting freedom of speech,” “prohibiting the use of harmful meansincluding torturein investigations of those suspected of terror activities,” and “prohibiting the use of military methods that cause ‘disproportionate’ harm to citizens.”

Those cases involved disputes that implicate widely recognized civil liberties. Not so the hypothetical decisions that Medina imagined, which involved issues such as recycling, desalination, pharmaceutical subsidies, and welfare programs to address “widening economic gaps.”

Medina also noted that Israeli “judicial activism” has included “relatively great involvement in ensuring the proper functioning of politics (predominately
restricting those who are suspected of breaking the law from serving in public office, barring someone from public office when there is a conflict of interest, and so forth).”The New York Times cites a recent example: Israeli judges invoked “reasonableness” to “bar Aryeh Deri, a veteran ultra-Orthodox politician, from serving in Prime Minister Benjamin Netanyahu’s cabinet. They said it was unreasonable to appoint Mr. Deri because he had recently been convicted of tax fraud.”

The bill that the Knesset is taking up this week targets decisions based on “reasonableness,” which the Times describes as a “flexible and contentious legal standard that currently lets the court intervene in governance.” Under that standard, the paper says, “a decision is deemed unreasonable if a court rules that it was made without considering all relevant factors or without giving relevant weight to each factor, or by giving irrelevant factors too much weight.”

That sort of analysis seems indistinguishable from the judgments that legislators themselves are charged with making. It is not hard to understand why critics would argue that the “reasonableness” standard invites judges to overstep their proper authority. The question is whether Israel can curb such unbridled discretion without compromising the rights that the Knesset has promised to respect.

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What we learned from the latest release of Epstein files

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What we learned from the latest release of Epstein files

A trove of newly released Epstein files include emails that appear to involve Andrew Mountbatten-Windsor, while another suggests Donald Trump travelled on the billionaire’s private jet “many more times than previously has been reported”.

The US Department of Justice released at least 11,000 more files on Tuesday.

It went on to claim that some of them “contain untrue and sensationalist claims” about President Trump.

Here are some of the latest news lines from this release of Epstein files. Being named in these papers does not suggest wrongdoing.

Who is ‘The Invisible Man’?

Among the documents released is an email sent to Ghislaine Maxwell that speaks about “the girls” being “completely shattered” at a Royal Family summer camp at Balmoral.

It is dated 16 August 2001 and sent by a person referred to only as “The Invisible Man”, but whom Sky News is reporting appears to be the former prince, Andrew.

We have come to that conclusion from reviewing the email address used, which is assigned to the Duke of York in Epstein’s contacts book and the chain of correspondence.


Andrew pictured laying on women

In the correspondence, “The Invisible Man” asks Maxwell: “How’s LA? Have you found me some new inappropriate friends?”

Andrew Mountbatten-Windsor has previously denied any allegations against him.


Watch: What’s in the largest batch of Epstein files?

The Peru trip

Another email appears to show Maxwell arranging “two-legged sight seeing” for “The Invisible Man” during a trip to Peru.

She appears to forward to “The Invisible Man” part of a conversation between herself and another person.

The email says: “I just gave Andrew your telephone no. He is interested in seeing the Nazca lines. He can ride but it is not his favorite sport ie pass on the horses.”

“Some sight seeing some 2 legged sight seeing (read intelligent pretty fun and from good families) and he will be very happy. I know I can rely on you to show him a wonderful time and will only introduce him to friends that you can trust,” Maxwell said.

The context of the email is unclear and there is no suggestion of any wrongdoing.


Epstein survivor speaks to Sky News after latest release of files

Trump on Epstein’s jet?

The latest bunch of files also includes an email from an unidentified prosecutor dated 7 January, 2020, in which President Trump is mentioned.

The email accuses him of travelling on Epstein’s private jet “many more times than previously has been reported”.

It adds that President Trump “is listed as a passenger on at least eight flights between 1993 and 1996, including at least four flights on which Maxwell was also present”.

The email’s sender and receiver have been redacted. However, at the bottom of the email it says assistant US attorney, Southern District of New York. The name has also been redacted.

President Trump has denied any wrongdoing in relation to his relationship with Epstein, and being on any of Epstein’s flights does not indicate any wrongdoing.

Read more:
Trump defends ‘big boy’ Clinton after Epstein files release
Why Andrew photo in Epstein files is awkward for Royal Family

Limousine driver report about Trump

One of the documents in the release shows a report made to the FBI that was recorded on 27 October 2020.

It includes an unverified claim by a limousine driver that he overheard the US president discussing “abusing some girl” in 1995.

The driver also mentions Trump said “Jeffrey” while on the phone during a journey to Dallas Fort Worth Airport in Texas.

A significant part of the statement, along with the driver’s identity, has been redacted.

The US justice department has said that some of the documents in the latest Epstein files release “contain untrue and sensationalist claims made against President Trump that were submitted to the FBI right before the 2020 election”.

“To be clear: the claims are unfounded and false, and if they had a shred of credibility, they certainly would have been weaponized against President Trump already,” it said.

Postcard mentions ‘our president’

Also among the documents is a postcard that claims to have been sent by Jeffrey Epstein, but has been refuted by the justice department.

In it, the sender tells the recipient: “Our president also shares our love of young, nubile girls.”

It’s not clear who “our president” refers to and the context of the postcard is also unclear.

The US justice department initially said it was “looking into the validity” of the postcard but later said on X that the “FBI has confirmed” the postcard is “FAKE”.

It cited reasons including a claim that the writing does not appear to match Epstein’s and another that the letter was postmarked three days after his death.

Row over unreleased documents

It is believed that many files relating to Epstein are yet to be made public.

There has been anger at the justice department’s slow release of the files, with politicians threatening to launch legal action against Attorney General Pam Bondi.

The deadline for the release of all the documents has passed.

“The DOJ needs to quit ⁠protecting the rich, powerful, and politically connected,” Republican congressman Thomas Massie said.

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China’s mineral dominance gives Western magnet makers a moment in the sun

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China’s mineral dominance gives Western magnet makers a moment in the sun

Annealed neodymium iron boron magnets sit in a barrel at a Neo Material Technologies Inc. factory in Tianjin, China on June 11, 2010.

Bloomberg | Bloomberg | Getty Images

Rare earth magnet makers are having a moment as Western nations scramble to build domestic “mine-to-magnet” supply chains and reduce their dependence on China.

A turbulent year of supply restrictions and tariff threats has thrust the strategic importance of magnet manufacturers firmly into the spotlight, with rare earths surging toward the top of the agenda amid the U.S. and China’s ongoing geopolitical rivalry.

Magnets made from rare earths are vital components for everything from electric vehicles, wind turbines, and smartphones to medical equipment, artificial intelligence applications, and precision weaponry.

It’s in this context that the U.S., European Union and Australia, among others, have sought to break China’s mineral dominance by taking a series of strategic measures to support magnet makers, including heavily investing in factories, supporting the buildout of new plants, and boosting processing capacity.

The U.S. and Europe, in particular, are expected to emerge as key growth markets for rare earth magnet production over the next decade. Analysts, however, remain skeptical that Western nations will be able to escape China’s mineral orbit anytime soon.

“Frankly, we were the solution to the problem that the world didn’t know it had,” Rahim Suleman, CEO of Canadian group Neo Performance Materials, told CNBC by video call.

Photo taken on Sept. 19, 2025 shows rare-earth magnetic bars at NEO magnetic plant in Narva, a city in northeastern Estonia.

Xinhua News Agency | Xinhua News Agency | Getty Images

“The end-market is growing from the point of physics, not software, so therefore it has to grow in this way,” he continued. “And it’s not dependent on any single end market, so it’s not dependent on automotive or battery electric vehicles or drones or wind farms. It’s any energy-efficient motor across the spectrum,” Suleman said, referring to the demand for magnets from fast-growing industries such as robotics.

His comments came around three months after Neo launched the grand opening of its rare earth magnet factory in Narva, Estonia.

Situated directly on Russia’s doorstep, the facility is widely expected to play an integral role in Europe’s plan to reduce its dependence on China. European Union industry chief Stéphane Séjourné, for example, lauded the plant’s strategic importance, saying at an event in early December that the project marked “a high point of Europe’s sovereignty.”

How Europe is scrambling to reduce dependence on China’s rare earths

Neo’s Suleman said the Estonian facility is on track to produce 2,000 metric tons of rare earth magnets this year, before scaling up to 5,000 tons and beyond.

“Globally, the market is 250,000 tons and going to 600,000 tons, so more than doubling in ten years,” Suleman said. “And more importantly, our concentration is 93% in a single jurisdiction, so when you put those two factors together, I think you’ll find an enormously quick growing market.”

‘Skyrocketing demand’

To be sure, the global supply of rare earths has long been dominated by Beijing. China is responsible for nearly 60% of the world’s rare earths mining and more than 90% of magnet manufacturing, according to the International Energy Agency.

A recent report from consultancy IDTechEx estimated that rare earth magnet capacity in the U.S. is on track to grow nearly six times by 2036, with the expansion driven by strategic support and funding from the Department of Defense, as well as increasing midstream activity.

Magnet production in Europe, meanwhile, was forecast to grow 3.1 times over the same time period, bolstered by the EU’s Critical Raw Materials Act, which aims for domestic production to satisfy 40% of the region’s demand by 2030.

Regional composition of rare earths and permanent magnet production in 2024, according to data compiled by the International Energy Agency.

IEA

John Maslin, CEO of Vulcan Elements, a North Carolina-based rare earth magnet producer, told CNBC that the company is seeking to scale up as fast as possible “so that this fundamental supply chain doesn’t hold America back.”

Vulcan Elements is one of the companies to have received direct funding from the Trump administration. The magnet maker received a $620 million direct federal loan last month from the Department of Defense to support domestic magnet production.

“Rare earth magnets convert electricity into motion, which means that virtually all advanced machines and technologies—the innovations that shape our daily lives and keep us safe—require them in order to be operational,” Maslin told CNBC by email.

“The need for high-performance magnets is accelerating exponentially amid a surge in demand and production of advanced technologies, including hard disk drives, semiconductor fabrication equipment, hybrid/electric motors, satellites, aircraft, drones, and almost every military capability,” he added.

Separately, Wade Senti, president of Florida-based magnet maker Advanced Magnet Lab, said the only way to deliver on alternative supply chains is to be innovative.

“The demand for non-China sourced rare earth permanent magnets is skyrocketing,” Senti told CNBC by email.

“The challenge is can United States magnet producers create a fully domestic (non-China) supply chain for these magnets. This requires the magnet manufacturer to take the lead and bring the supply chain together – from mine to magnet to customers,” he added.

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Technology

Motive, an Alphabet-backed fleet management software company, files for IPO

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Motive, an Alphabet-backed fleet management software company, files for IPO

Direxion signage at the New York Stock Exchange (NYSE) in New York, US, on Monday, Dec. 22, 2025. The holiday-shortened week started with gains in stocks amid a broad advance that saw a continuation of the bullish momentum on Wall Street.

Michael Nagle | Bloomberg | Getty Images

Motive, a company with software for managing corporate trucks and drivers, on Tuesday filed for an initial public offering on the New York Stock Exchange under the symbol “MTVE.”

The paperwork puts Motive among a fast-growing group of tech companies looking to go public in 2026. Anthropic, OpenAI and SpaceX have all reportedly considered making their shares widely available for trading next year.

Motive is smaller, reporting a $62.7 million net loss on $115.8 million in revenue in the third quarter. The loss widened from $41.3 million in the same quarter of 2024, while revenue grew about 23% year over year. The company had almost 100,000 clients at the end of September.

Ryan Johns, Obaid Khan and Shoaib Makani started Motive in 2013, originally under the name Keep Truckin. Makani, the CEO, is Khan’s brother-in-law.

Investors include Alphabet’s GV, Base10 Partners, Greenoaks, Index Ventures, Kleiner Perkins and Scale Venture Partners.

Motive’s AI Dashcam device for detecting unsafe driving “has prevented 170,000 collisions and saved 1,500 lives on our roads,” Makani wrote in a letter to investors. Most revenue comes from subscriptions, although Motive does sell replacement hardware and professional services.

The San Francisco company changed its name to Motive in 2022, and as of Sept. 30, it employed 4,508 people. Motive employs 400 full-time data annotators who apply labels that are meant to enhance artificial intelligence models.

Motive has ongoing patent-infringement litigation with competitor Samsara, which went public in 2021 and today has a $22 billion market capitalization.

WATCH: AI IPO boom next year? The changing 2026 IPO landscape

AI IPO boom next year? The changing 2026 IPO landscape

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