Israel has received a strong warning from the Group of Seven (G7) countries, requesting that it stop taking any acts that weaken the Palestinian Authority (PA).
According to reports by AP, this warning is in response to recent actions taken by far-right Israeli officials to withhold tax money from the PA in the West Bank, which is a vital source of finance for the organisation under temporary peace deals that date back to the 1990s.
The G7 countries underlined in their final communiqué from the summit in Italy the fiscal stability of the PA in the face of pressing budgetary requirements, as well as the significance of Israel’s role in collecting taxes on behalf of the Palestinians.
The statement emphasises worries that the West Bank’s current severe economic conditions which are a result of persistent tensions and conflict dynamics could worsen if these monies are withheld.
The G7 leaders recommended the relaxation or removal of other economic measures that could exacerbate the economic situation in the area, and they called on Israel to release the withheld tax funds as soon as possible.
This appeal comes in response to recent moves made by Israeli Finance Minister Bezalel Smotrich to divert money intended for the PA to other uses, such as aiding Israeli terrorism victims.
Israel had temporarily stopped these transfers following the fighting that was sparked by a Hamas attack on October 7, but eventually rerouted the money through Norway to the PA. Smotrich has since suggested a departure from this arrangement and other financial measures that may make it more difficult for the PA to pay its debts, which include paying salaries to thousands of employees.
In their joint statement, the G7 reaffirmed their backing for the hostage-for-ceasefire plan that US President Joe Biden is pushing, pleading with Israel and Hamas to accept the arrangement.
In light of the increased fighting between Israeli forces and Hezbollah militants, they expressed particular concern about the rising tensions along the Israel-Lebanon border.
However, they also acknowledged the UN Interim Force in Lebanon (UNIFIL) and the Lebanese Armed Forces (LAF) for their stabilising roles in risk management in the region.
