Palestinian Economic Crisis Sparks Fears of Instability

NEWS DESK | Two bills  — one by the U.S. and one by Israel — may strangle the Palestinian Authority financially with results that could become a massive problem for Israel's security forces and the PA itself. Our Daniel Tsemach has the story.

Story:

A struggling Palestinian government in the West Bank could spell trouble for Israeli security. 

The Palestinian authority took a huge financial hit when it refused over $60 million of U.S. aid on January 31, fearing lawsuits by Americans. This stems from a recent U.S. law called the ‘Anti-Terrorism Clarification Act’, which went into effect February 1.

This law could expose the Palestinian Authority to these lawsuits. 

Now, concerns are mounting that the Palestinian Authority could take a larger hit if Israel begins to enforce tax deductions from money it allocates for the PA — the total sum of which is about $131 million each month

In July 2018, Israel enacted its own a law to financially penalize the PA for paying stipends to Palestinians jailed by Israel, their families and the families of Palestinians killed by Israeli security forces.

The concern is that further economic strangulation could actually hurt Israel, in turn. More specifically, the destabilization in the West Bank that results from the economic crisis could become a crisis for Israeli security.

‘If people continue to suffer and have no resources and are deprived of basic humanitarian needs, there could be an explosion,’ says Palestinian National Initiative General Secretary Mustafa Barghouti. ‘This policy is very dangerous and would be disastrous for stability in the region.’

Israelis are wary of a worsening situation in the West Bank, but understand that overall security stability is a priority for both parties

‘Security coordination between Israel and the Palestinian Authority will not see change in the near future, because the Palestinian Authority knows as a holy interest,’ former IDF COGAT advisor Alon Eviatar explains.

It may be a vital interest for both parties, but a government hanging by a thread may well struggle to keep its head above water, especially if there are more economic restraints on the way.

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