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Kahlon says he will continue helping Palestinian economy
Israel’s Finance Minister Moshe Kahlon said yesterday that he intends to continue taking steps, where possible, to help boost the Palestinian economy.
Last month, Kahlon agreed several measures which will ease the financial strain on the Palestinian Authority (PA) following talks with his Palestinian counterpart Shukri Bashara. With the agreement of Prime Minister Benjamin Netanyahu, Kahlon 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 agreed to issue thousands of extra work permits in Israel for West Bank Palestinians, on top of the existing 60,000 permits. Kahlon and Bashara are also thought to have discussed boosting Palestinian infrastructure.
Speaking yesterday at a conference at Tel Aviv University, Kahlon indicated that he will continue to take such measures to relieve the PA’s financial burden. He said, “The situation must be eased. I believe in economics.” He explained that when economic conditions are eased, Israel’s security is likely to be strengthened. Kahlon commented, “My world view is that we need security and they [PA] know how to provide it” and that “When the economy is good they don’t shoot. Perhaps I’m naive but that’s my view.” Kahlon added that he intends to continue this process, saying “In my small kingdom I do my utmost as long as I know that the money is going for education, teachers and welfare.”
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.
In his speech yesterday, Kahlon also said that he would like to see the new ten-year military aid package from the United States, currently under discussion, concluded as soon as possible, saying “An economy needs a horizon. It needs a multiyear plan.”