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Israel Responds to Move to Recognize Palestinian State by Withholding Funds (www.nytimes.com)

submitted 3 months ago* (last edited 3 months ago) by [email protected] to c/[email protected]

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Israel will not transfer much-needed funds to the Palestinian Authority in the wake of the decision by three European countries to recognize a Palestinian state, the country’s finance minister said on Wednesday, as its foreign minister denounced the European moves as giving “a gold medal to Hamas terrorists.”

The decision by the finance minister, Bezalel Smotrich, a far-right leader who opposes Palestinian sovereignty, threatened to push the Palestinian government into a deeper fiscal crisis. He said in a statement that he had informed Prime Minister Benjamin Netanyahu that he would no longer send tax revenues to the authority, which administers parts of the Israeli-occupied West Bank in close cooperation with Israel.

Mr. Smotrich’s office signaled that the decision was at least partly a response to Spain, Norway and Ireland recognizing Palestinian statehood, and that the Palestinian leadership bore responsibility for campaigning for the move.

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[–] [email protected] 3 points 3 months ago

This is the best summary I could come up with:

He said in a statement that he had informed Prime Minister Benjamin Netanyahu that he would no longer send tax revenues to the authority, which administers parts of the Israeli-occupied West Bank in close cooperation with Israel.

Mohammad Mustafa, the recently inaugurated Palestinian Authority prime minister, warned that the dire fiscal situation was contributing to a “very serious moment” in the West Bank, which has faced increasing unrest since the Hamas-led Oct. 7 attacks on Israel.

The Ramallah-based Palestinian Authority is already in a severe financial crisis following tightened Israeli restrictions on its funding and a depressed West Bank economy stemming from the war.

Top Israeli officials, including Mr. Netanyahu, have repeatedly excoriated international recognition of a Palestinian state as a “prize for terrorism” after the Oct. 7 attack.

Most of the current hard-line Israeli government rejects the establishment of an independent Palestinian state, practically ruling out peace talks to end Israel’s decades-long occupation.

President Biden and Secretary of State Antony J. Blinken have said that after the war, Gaza should be unified with the West Bank under a “revitalized” Palestinian Authority.

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