The latest press reports about European Union pressure on the Palestinian government to accept the truncated customs and tax funds that Israel collects on behalf of Palestinians appear to be serious. While EU officials have denied there is any pressure on Ramallah, reliable Palestinian sources in Ramallah told Al-Monitor the pressure is real. “Everyone is looking for a solution, and the EU was supposed to help find a bridging formula. The media coverage is perhaps part of the process to help bring this situation to a resolution,” the source, who asked not to be identified, said. The source insisted no Palestinian position will be taken until the results of the US Nov. 3 elections become clear.

Palestinians and Israelis have been at loggerheads after the Israeli government and Knesset decided to punish Palestinians for their support to families of prisoners and martyrs.

Israel’s Knesset passed a law in July 2018 barring the transfer of the amount used for the prisoners’ and martyrs’ safety net. Palestine’s finance minister refused to accept the truncated monies.

Since the 1994 Paris Economic Protocol, Israel has been collecting customs and taxes for goods earmarked for Palestine and transferring the amount monthly after taking a 3% administrative fee. The latest decision is a further cut of revenues that are supposed to be deposited in the Palestinian coffers.