Will Smotrich's Plan Topple The Palestinian Authority?

By Arutz-7
Posted on 05/23/24 | News Source: Arutz-7

Following announcements by several European countries, including Spain, Ireland, and Norway, that they will unilaterally recognize a Palestinian state, Finance Minister Bezalel Smotrich has announced a nonviolent response that has the world in a tizzy.

In his announcement, Smotrich said that he would take financial steps which would topple the Palestinian Authority in Judea and Samaria, where the European countries have declared they would recognize "Palestine."

Among these steps is a complete halt to the transfer of tax money to the Palestinian Authority, and no extension of the indemnity extended to banks which transfer money to banks in Judea and Samaria.

Smotrich also called on Prime Minister Benjamin Netanyahu to take a number of financial steps which will deal a critical blow to the Palestinian Authority and may cause its economic collapse within a matter of months.

If Smotrich implements his plan, Israeli banks will cease cooperation with PA institutions, leading to a significant decrease or total cessation of the import of crucial products such as food products, electricity, and water to Judea and Samaria. The salaries of PA employees will also not be transferred if the financial cooperation between Israeli and PA banks grinds to a halt.

Speaking to the Financial Times, senior US and European officials warned of an "economic catastrophe" which would topple the PA.