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Israel Finance Minister agrees measures to boost Palestinian economy
Yediot Ahronot this morning reports that Israel’s Finance Minister Moshe Kahlon has agreed several measures which will ease the financial strain on the Palestinian Authority (PA) and boost the Palestinian economy.
Relations between Israel and the PA have been especially fraught over the last several months, with Israeli leaders having accused PA President Mahmoud Abbas of stoking the current violence with incendiary rhetoric. At least 31 Israelis have been killed in near-daily attacks by Palestinians since the start of October.
However, it was reported earlier this week that Kahlon and his counterpart Shukri Bashara had intensified talks which they began in January over measures to increase Palestinian work opportunities and boost infrastructure. Kahlon was said to be preparing to present recommendations to Prime Minister Benjamin Netanyahu.
Yediot Ahronot’s Nahum Barnea reports this morning that Kahlon has now released around £91 million in withheld Palestinian customs and tax funds, which will cover around one third of the PA’s current deficit. In addition, in conjunction with Defence Minister Moshe Ya’alon, Kahlon has agreed to issue thousands of extra work permits in Israel for West Bank Palestinians, on top of the existing 60,000 permits.
According to Barnea, Kahlon believes that improving the economic situation for Palestinians is likely to lead to a decrease in terror. Apparently, although it is not a condition of the new measures, Kahlon has made clear that he expects to see an end to incitement in PA-controlled media and from PA President Abbas. However, Kahlon is quoted by Barnea saying that “There is no diplomatic initiative here,” although the measures are thought to have the broad backing of Netanyahu and his cabinet.
In response, PA Finance Minister Bashara is said to have sent a warm letter “to express my profound appreciation” towards Kahlon. Bashara is quoted saying “we have reached a positive turning point and set the stage for new beginnings in the commercial relationship between Israel and ourselves.”