BICOM

Reuters reports this morning that Palestinian Authority (PA) Prime Minister Salam Fayyad has offered his resignation to PA President Mahmoud Abbas after ongoing disagreements between the two leaders intensified.

Fayyad’s office apparently declined to comment on the report, but Reuters says that two sources informed them of his resignation. This would not be the first time that Fayyad has offered his resignation, having quit as Prime Minister in March 2009, only to be re-appointed after Abbas refused to accept his resignation. It is unclear whether Abbas would let Fayyad stand down, despite tension between the two. Fayyad is popular with Western governments who credit him with bringing Palestinian finances under control, tackling corruption and mismanagement, and spearheading state-building efforts in the West Bank.

The reports follow an apparent escalation in tensions between Fayyad and Abbas, amidst significant difficulties facing the Palestinian economy. Last week, Abbas’ Fatah party issued an unusually harsh rebuke which appeared to be aimed at Fayyad, saying “The policies of the current government are improvised and confused in many financial and economic issues.” Abbas was reported to be particularly angered after Fayyad last week accepted the resignation of PA Finance Minister Nabil Qassis against his wishes.

There have been clear tensions between the two men for some time, with Fayyad unimpressed by Abbas’ move to unilaterally upgrade the status of the Palestinian delegation at the United Nations last November, which triggered Israeli and US retaliation in the form of cuts in financial transfers. In another indication of discord between the two, US Secretary of State John Kerry met Abbas and Fayyad separately during his visit to the region several says ago.

Fayyad, who is former World Bank economist, has been PA Prime Minister since 2007.