PA officials on economic crisis: Stability is in Israel's interest

Senior Palestinian Authority (PA) officials told Haaretz newspaper yesterday that President Mahmoud Abbas will continue to refuse partial tax revenues collected by Israel on the PA’s behalf, as long as Israeli authorities deduct funding destined for Palestinian prisoners and their families.

“For years we’ve been talking to Israel and the entire international community about how important the existence of the PA is for stability in the West Bank,” an official said, adding: “It’s clearly in Israel’s interest to preserve stability.”

The official “added this interest is shared by Jordan, Lebanon and other Arab countries that would have to deal with the security, diplomatic and financial consequences if the PA collapses.”

“As far as we’re concerned, let the people take to the streets,” the official continued.

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“We have our backs to the wall. The ones who should feel pressured are all those who have gotten used to having someone handling Palestinian affairs in the West Bank and coordinating security with Israel for 25 years.”

“In the event of a collapse there won’t be a vacuum. Israel knows exactly who will control the field. That’s why Israel should rethink this. In the White House they may find themselves without a PA when they present their so-called ‘Deal of the Century’, and Jordan and Lebanon will have to explain what they plan to do with the Palestinians in their territories.”

Haaretz noted that “Israel, as well as the United States and the Arab world, fear that a collapse of the Palestinian Authority will lead to chaos in the West Bank”, adding that “according to senior PA officials, this is the Palestinians’ only leverage”.

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The paper reported that “in private conversations in recent days, Abbas has told associates that the current crisis is a tough test for everyone”, declaring that “‘the Arab world promised a financial safety net and we expect that promise to be kept’”.

Abbas also said that if the PA agrees to accept the partial funds, “then Israel will exploit every opportunity to make more unilateral deductions. That’s why there will be no such compromise and Israel will have to reverse its decision and return the money in full”.

Israel transferred February’s tax money after making the politically-motivated deductions, but the PA returned the money without using it. The tax transfers constitute 63 per cent of the PA’s budget.