{"id":8793,"date":"2023-11-02T20:33:29","date_gmt":"2023-11-02T20:33:29","guid":{"rendered":"https:\/\/infundpros.com\/business\/israeli-cabinet-clashes-over-payments-to-palestinian-authority\/"},"modified":"2023-11-02T20:33:29","modified_gmt":"2023-11-02T20:33:29","slug":"israeli-cabinet-clashes-over-payments-to-palestinian-authority","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=8793","title":{"rendered":"Israeli cabinet clashes over payments to Palestinian Authority"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=b1a67af2-8562-46f3-aa53-4469011f5b7c\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Senior members of the Israeli cabinet have clashed over payments Israel makes to the Palestinian Authority, as the war with Hamas exacerbates faultlines in Benjamin Netanyahu\u2019s rightwing coalition.<\/p>\n<p>Ultranationalist finance minister Bezalel Smotrich said earlier this week that he had directed officials to halt the transfer of funds to the PA \u2014 which exercises limited autonomy in parts of the occupied West Bank \u2014 claiming it supported Hamas\u2019s devastating attack on Israel last month.<\/p>\n<p>But in a press conference on Wednesday evening, defence minister Yoav Gallant insisted Israel should send the funds as soon as possible, arguing that the PA played a key role in maintaining stability in the West Bank, which Palestinians seek as the heart of a future state but which has been under Israeli military occupation since 1967.<\/p>\n<p>\u201cIt is appropriate to transfer the funds to the Palestinian Authority immediately so they will be used by its forces and by sectors\u2009.\u2009.\u2009.\u2009that are dealing with the prevention of terrorism,\u201d said Gallant, a member of Netanyahu\u2019s Likud party.<\/p>\n<p>The spat within the Israeli government comes as western and Arab diplomats have been discussing the need to bolster the PA, partly in the hopes that it would help contain unrest in the West Bank, but also to act as a counterweight to Hamas. <\/p>\n<p>US secretary of state Antony Blinken said this week that it would make sense for an \u201ceffective and revitalised Palestinian Authority to have governance and ultimately security responsibility for Gaza\u201d.<\/p>\n<p>The PA has condemned the killing of civilians, but its leadership has stopped short of denouncing Hamas for the October 7 attack.<\/p>\n<p>Under the Oslo Accords \u2014 interim peace agreements signed between the Israelis and Palestinians in the 1990s \u2014 Israel collects various taxes on behalf of the Palestinians and transfers the funds each month to the PA. According to the PA finance ministry, the transfers in the first nine months of this year have averaged around Shk730mn ($183mn) per month.<\/p>\n<p>The cabinet spat underscores the divisions in Netanyahu\u2019s government, between those who want to bolster the PA and see it as a stabilising force in the West Bank, and religious nationalists such as Smotrich, who regard the PA as an impediment to their ambitions to fully annex the territory.<\/p>\n<p>Gallant\u2019s intervention follows pushback against Smotrich\u2019s move by the US, Israel\u2019s key ally and security guarantor, with Antony Blinken, the secretary of state, saying during a hearing in Washington this week that the PA\u2019s lack of financial resources was undermining its position.<\/p>\n<p>\u201cThe Palestinian Authority is doing everything it can to keep security and stability in the West Bank,\u201d Blinken said. \u201cIt is vastly under-resourced. This is another aspect of the problem.\u201d<\/p>\n<p>Israel has previously withheld funds for the PA. Days after Netanyahu\u2019s government came to power in December, Smotrich signed a decree to withhold payments, saying he had \u201cno interest\u201d in whether the PA continued to exist after it launched international legal measures against Israel over the country\u2019s occupation of the West Bank.<\/p>\n<p>Raja Khalidi, director-general of MAS, a West-Bank-based economic think-tank, said that if Smotrich\u2019s threats to cut funding were carried out, they would have a severe impact on both the PA\u2019s ability to function and its wider economy.<\/p>\n<p>\u201cIf this is not just a theatrical gesture\u2009.\u2009.\u2009.\u2009that\u2019s going to cause problems for the budget. Maybe not this month \u2014 they maybe have reserves somewhere \u2014 but in a month or two,\u201d he said.<\/p>\n<p>\u201cThe question then is at what point will the PA be unable to pay its obligations to the banks and the 150,000 people on its payroll? And at what point does that trigger something else, [such as] a complete collapse of aggregate demand?\u201d<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/b1a67af2-8562-46f3-aa53-4469011f5b7c\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Senior members&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-8793","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Israeli cabinet clashes over payments to Palestinian Authority | inFundPros<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Senior members of the Israeli\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=8793\" \/>\n<meta property=\"og:locale\" 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