Examination of potential financial assistance for Palestinians residing in the West Bank by German authorities
The Palestinian Authority is currently grappling with an acute financial crisis, as warned by Alabali Radovan, the German Development Minister. This predicament has raised concerns about potential instability in the West Bank, with experts fearing that the Islamic Hamas could gain political capital from the potential collapse of the Palestinian Authority.
Israel has been withholding tax funds from the Palestinian Authority since May, a move that has exacerbated the financial crisis. Alabali Radovan urged Israel during a Middle East trip in late August to pay the withheld tax funds to the Palestinian Authority.
In an effort to alleviate the crisis, Alabali Radovan has proposed emergency aid of 30 million euros for the Palestinian Authority. This aid is intended to partially compensate for the tax revenues blocked by Israel. The Ministry of Development is in close coordination with the Federal Chancellery, the Foreign Office, and the Federal Ministry of Finance regarding the aid.
Germany also plans to discuss additional aid for the Palestinian Authority within the EU. The proposed aid is intended to be used for salary payments in the health and education sectors in the West Bank.
Foreign Minister Johann Wadephul (CDU) has also called on the Israeli government to continue transferring the tax funds that are rightfully due to the Palestinians. This call echoes his August statement, where he urged the continuation of the transfer of taxes and duties owed to the Palestinian Authority by Israel.
The tax agreement between Israel and the Palestinian Authority dates back to the Oslo Peace Process in the 1990s. However, the European Union links its support for the Palestinian Authority through the PEGASUS mechanism to reforms and sets rules for controlling the use of funds.
The final decision on the aid has not been made yet, according to reports from the black-red coalition circles. Alexander Hoffmann, CSU parliamentary group leader, stated that there is a need for clarification regarding these funds and that projects that threaten Israel's security must be clearly excluded.
Sebastian Hille, the deputy government spokesperson, said that they are waiting to see what happens in the Bundestag. The situation remains uncertain, but Germany's commitment to providing aid to the Palestinian Authority underscores its commitment to maintaining stability in the region.
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