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Israeli cabinet approves economic package for Palestinians

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The Israeli Government yesterday approved a package of infrastructure, housing and border improvements to boost the Palestinian economy.

Prime Minister Benjamin Netanyahu was reportedly keen to announce the confidence-building measures before President Trump arrives in Israel today.

Senior White House officials hinted last week that President Trump was expecting both Israel and the Palestinians to take steps that will create a suitable atmosphere for resuming the peace process.

The new measures include:

  • Approving planning permission for thousands of Palestinian homes in parts of Area C adjacent to Palestinian cities;
  • Easing passage between the West Bank and Israel at crossing points used by Palestinian labourers. The cabinet approved the expansion of the Sha’ar Ephraim crossing, near Tul karm;
  • Extending the opening hours of the Allenby Crossing. The crossing connects the West Bank to Jordan and is a vital trade route;
  • Expanding the Tarqumiya industrial zone, in the south Hebron Hills, into Area C, which is under Israeli control;
  • Examining the feasibility of building a connection between Jenin and Israeli railway network.

The cabinet held two votes. The first, to approve the changes to the crossings, was passed unanimously. The second, to grant planning permission for Palestinian homes in Area C, was opposed by Jewish Home ministers Naftali Bennett and Ayelet Shaked. Bennett opposed territorial concessions to the Palestinians in the guise of economic concessions “without them giving anything in return”. Prime Minister Netanyahu and Defence Minister Avigdor Lieberman spoke in favour of the policy.

A senior Israeli official at the meeting explained: “These steps do not change the status of the West Bank territories.”

He added that most of the housing permits authorised were for existing homes built illegally by Palestinians. The cabinet also created a special committee to regulate illegal housing in settlements as well as illegal outposts in the West Bank.