BICOM

Israel has transferred hundreds of millions of shekels of tax revenues to the Palestinian Authority (PA). The money, frozen since December, will allow the PA to pay salaries and bills.

The move, supported by the EU and USA, will take pressure off of the PA and was widely welcomed.

Israel froze the transfer of tax revenues to the PA following the Authority’s decision to pursue unilateral measures against Israel, in particular joining the International Criminal Court and immediately referring Israel to the Court for a War Crimes investigation.

In response, the Palestinian Authority had threatened to end security cooperation with Israel in the West Bank.

The decision to release the tax revenues was made by Prime Minister Benjamin Netanyahu with the support of the Defence Minister Moshe Yaalon, the IDF and the Shin Bet security service. The Prime Minister’s Office in Israel announced on Friday that, “Given the deteriorating situation in the Middle East, one must act responsibly and with due consideration alongside a determined struggle against extremist elements … the tax revenues that accrued up until February will be transferred, offset by payments for services rendered to the Palestinian population, such as electricity, water and hospitalization.”

Although the PA was in urgent need of the tax funds, there seemed to be an understanding that Mr Netanyahu would find it politically difficult to release them during Israel’s election campaign and would do so after the election.

According to a report in the Jerusalem Post, the PA has promised not to open any additional cases against Israel at the ICC, though the current investigation is now in the hands of the court and will continue to run.