The Israeli Opposition vowed to “fight for the soul of the nation” with fresh protests as parliament prepared to hold a first reading on Monday of judicial changes promoted by Prime Minister Benjamin Netanyahu’s religious-nationalist government.

Wielding 64 of the Knesset’s 120 seats, Netanyahu looked likely to win eventual ratification for the first two changes, one increasing the government’s sway in choosing judges and the other setting limits to the Supreme Court’s ability to strike down legislation.

By noon, thousands of citizens carrying Israeli flags and STOP signs streamed to parliament to protest the vote that was expected to be held later in the day.

Polls have found that most Israelis want the reforms slowed to allow for dialogue with critics. The shekel was 0.6 per cent weaker versus the dollar in midday trading. Seeing instability from the reform feud, many economists, and leaders from high-tech and banking have warned of investor and capital flight from Israel.

But a key coalition figure brushed this off. “There is no link between the justice system reforms and any blow to Israel’s economy,” said Knesset Finance Committee chairman Moshe Gafn.

“Any attempt at linkage is politicised.” Opposition lawmakers protested Gafni’s statement, calling the committee “a circus”.