What’s happening:
Israel’s security cabinet is contemplating a new proposal from Finance Minister Bezalel Smotrich to channel funds intended for the Palestinian Authority through a third party rather than directly from Israel. This alternative avenue would possibly involve nations like Norway facilitating the transfer.
Why it matters:
This development is the latest in the ongoing debate over funds that Israel collects on behalf of the PA. The antecedent blockage of transcations by Smotrich, who feared funds might end up supporting Gaza-based Hamas employees, has led to the PA’s refusal to accept less than the full amount. Tensions are high as Israel experiences pressure from the United States and faces growing concerns over repercussions to regional stability.
The big picture:
The consideration for the finance minister’s proposal follows a heightened state of alert in Israel and the West Bank, amid a backdrop of recent terror attacks and fears of escalating violence. Maintaining support for a financially burdened Palestinian Authority is thought to be pivotal to regional stability and security by the Israeli security establishment. There’s also the matter of political stakes — Prime Minister Benjamin Netanyahu is seeking to keep his coalition intact, which makes the support of right-wing factions crucial.
Context:
Earlier, a cabinet decision led to a partial transfer of tax funds to the Palestinian Authority but with an important caveat — withholding funds equivalent to the amounts the PA devotes to employees residing in Gaza. Smotrich stands resolute against funding which could indirectly fall into Hamas’s hands. On the other side, the Israeli security establishment warns against exacerbating PA’s financial woes.
On the other hand:
National Security Minister Itamar Ben Gvir has voiced his reservations, citing the inability of the proposed plan to sufficiently ensure funds won’t reach Gaza. The Cabinet did not move to a vote at the time of the reports.
What’s next:
If the Palestinian Authority is detected directing funds toward Gaza-based activities, Israel threatens to cut off further tax revenues, thereby intensifying economic pressures and potentially increasing tensions both domestically and regionally. Meanwhile, military and police vigilance remains high in light of the recent tragic terror incident in Ra’anana.
This story was first published on timesofisrael.com.