WASHINGTON – The United States warned Thursday that Israel will see a “massive” negative impact if the Palestinian Authority collapses as Washington again pressed its ally to let revenue flow.
“If you saw the Palestinian Authority collapse and instability spread across the West Bank, it’s not just a problem for the Palestinians,” he said, “it is also a massive security threat for the state of Israel.”
Under peace agreements in the 1990s, Israel collects money for the Palestinian Authority (PA) which exercises limited autonomy in parts of the West Bank.
Israel then disburses the money to the PA.
But Israel has been blocking revenue since Hamas on October 7 carried out its massive attack in Israel, triggering a relentless retaliatory military campaign.
Israeli Finance Minister Bezalel Smotrich is a member of the far right who advocates Jewish settlement of the West Bank.
Prime Minister Benjamin Netanyahu is also a long-time critic of the Palestinian Authority and of moves toward an independent Palestinian state.
The World Bank recently warned that the Palestinian Authority’s fiscal situation has “dramatically worsened” with the risk of complete collapse. – Agency
