Israel considers helping PA with economic crisis

Palestinian workers in Israel daily have to cross Israeli checkpoints (Jaclynn Ashly)

Middle East Monitor  /  July 17, 2021

Following the warning of US Envoy Hady Amr that the Palestinian Authority (PA) is facing dangerous economic and political crises, Israel has reportedly announced that it will help the PA deal with its financial crisis.

Israeli newspaper Haaretz reported that the Israeli occupation government is considering restricting debt collection from the PA in order to ensure its financial and political stability.

Following a series of meetings with PA and Israeli officials, US Deputy Assistant Secretary of State for Israel and Palestinian Affairs Hady Amr has warned that the PA is facing financial and political crises.

The US official called on Israel to relieve the restrictions imposed on the PA and told both sides that he would not interfere in solving the problem, but reiterated that the US is there if any or both request its help.

It is worth noting that the Israeli government decided last week that it would deduct NIS597 million from the tax money it collects and transfers to the PA for exports from Gaza, Ynet News reported.

According to the Israeli cabinet, this money goes to terrorists. However, it is paid for the families of Palestinians wounded by the Israeli occupation or families of Palestinians killed or detained by Israel.

PA Prime Minister Mohammad Shtayyeh confirmed that the monthly deduction of this money would put the PA in a very critical economic situation.