Key Decisions:
In a recent session, Israel’s Security Cabinet has approved a new arrangement for handling tax funds often withheld from the Palestinian Authority (PA), involving a transfer to Norway to act as a third-party holder.
Why it Matters:
The significant decision aims to prevent financial crisis and potential state collapse at the PA, whilst ensuring that monetary resources do not support activities in Gaza that Israel considers a security threat. This move reflects a broader strategy to retain fiscal control and security oversight.
The Details:
Finance Minister Bezalel Smotrich voiced his approval stating there is a clear ‘American guarantee,’ providing assurance that no funds managed by Norway will reach Gaza, which could then assert pressure on Hamas. On the other hand, National Security Minister Itamar Ben-Gvir cast the opposing vote, citing concerns over funds possibly reaching hostile entities.
U.S Involvement:
The U.S. endorsed the new scheme which calls for systematic reporting to Israel to ensure compliance, with potential sanctions should the agreement be compromised.
Opposition from Palestinian Authority:
Hussein al-Sheikh, Secretary General of the PLO Executive Committee, opposed the cabinet’s decision firmly, highlighting the Palestinian resistance towards any limitations on their financial assets by Israel and calling for international intervention.
Fiscal Impact:
Tax refunds, which are a considerable part of the PA’s budget at roughly 65%, serve as the lifeblood for many Palestinian civil service and security sector employees, with essential funds allocated to payroll specifically set aside for Gaza employees under the new terms.
International Presence:
Norway’s role underscores its trusted international standing and potential influence as a mediator and facilitator for conflict resolution, aligning with both Israeli security concerns and broader stability objectives.
Big Picture:
This development represents a strategic diplomatic maneuvering, collaborating with international counterparts like Norway and the U.S. to retain oversight of financial transactions that have implications for regional peace and security dynamics.
Be Heard:
Your opinions matter. Share your thoughts on this move and how it aligns or conflicts with your views on ensuring regional stability, fairness in international financial policies, and the broader quest for peace.
This story was first published on ynetnews.com.