In the UK we have a doctrine called the separation of powers. The institutions of the state are meant to divided in order to prevent tyranny. The division is as follows: the executive, the legislature and the judiciary. It's not perfect and there is corruption, but it works for the most part.
Sounds like the executive (Netanyahu) in this case is trying to neuter the judiciary. I don't know the situation in Israel but this doesn't sound good for a democratic society.
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