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Israel tries rescuing PA from collapse, after instigating crisis to begin with

Israel must now face the economic crises of the Palestinian Authority, which was generated by the decision of Prime Minister Benjamin Netanyahu to cut Palestinian tax revenues over stipends to families of assailants.
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The Palestinian Authority (PA) is on the verge of collapse. Israeli security officials believe that barring drastic rescue measures, Palestinian President Mahmoud Abbas will step down regardless of whether he quits of his own free will or is forced out by mass protests over the failure of funding-strapped institutions to carry out their tasks. Israel’s security agencies are convinced the collapse is only a matter of time as a result of Israel’s own doing and that of its friend, the United States.

The first responsible for the possible collapse of the PA is Prime Minister Benjamin Netanyahu. The 1994 Paris Protocol, which regulates economic ties between Israel and the PA, stipulates that Israel would collect on behalf of the PA tax revenues on imported goods and then transfer the money to the PA. But in February, under pressure from right-wing political parties and the upcoming April 9 elections, Netanyahu approved the enforcement of a 2018 law that allows Israel to deduct money from these tax revenues in the equivalent amount the PA pays the families of Palestinians accused of terrorist activities against Israel. That means a reduction of some 500 million shekels ($138 million) from the duties Israel collects for the PA.

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