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Kahlon leak closes path around Deduction Law

Efforts by Israel and the Palestinians to find solutions for alleviating the economic crisis facing the Palestinian Authority had met with some success, but a recent leak meant the end of the road for much-needed additional measures.
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It has been about two months since a partial solution was found to the problem surrounding the transfer of tax money collected by Israel to the Palestinian Authority (PA). As it turns out, the danger has yet to pass. The PA remains in dire economic straits.

A security source told Al-Monitor that Palestinian President Mahmoud Abbas and senior members of his administration believe that without immediate improvement in the economic situation on the West Bank, towns there will be overrun by demonstrations led by PA employees, who have only received a portion of their salaries for the past few months. Given the resulting lack of commerce, local businesses will collapse.

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