BICOM

Israel’s Finance Minister Yair Lapid met for the first time yesterday with his counterpart in the Palestinian Authority (PA) Shukri Bishari.

At the meeting at Israel’s Finance Ministry in Jerusalem, Lapid and Bishari agreed to a timetable of confidence building measures, with economic ties between Israel and the PA having been largely frozen over the last six months. Cooperation broke down after the PA took unilateral steps to upgrade the status of the Palestinian delegation to the United Nations in November. Lapid commented yesterday, “Economic cooperation will contribute to Israel and the Palestinian Authority…We will continue to strengthen ties and advance the economic subjects on both sides.”

Cooperation exists on a number of economic measures, with Israel collecting some tax and customs money on behalf of the PA while the VAT rates between the two economies are linked. However, YNet reports that Lapid and Bishari agreed yesterday to resume regular meetings to coordinate issues such as crossing points, fuel, power and water supplies to the Palestinians and payment for treatment of Palestinians in Israeli hospitals.

It is hoped that increased economic ties will provide a timely boost to the Palestinian economy. Last week the PA indicated that it would need outside help to pay salaries, while a World Bank report in March said that the Palestinian economy is in long-term danger, calling for “Bolder efforts to create the basis for a viable economy… to prevent the continued deterioration that will have lasting and costly implications for economic competitiveness and social cohesion.”

In a related item, Israel’s cabinet yesterday approved new measures to combat so-called “Price Tag” attacks in the West Bank, acts of vandalism against Palestinian property by those opposed to curbs on settlement building. Such attacks will now be designated as the work of “illicit organisations” paving the way to use expanded law-enforcement tools.