Norway on Sunday mentioned it had agreed to assist with the switch of frozen tax funds earmarked for the Palestinian Authority (PA) that have been collected by Israel, offering important funding to the Western-backed entity.
Under interim peace accords reached within the Nineteen Nineties, Israel’s Finance Ministry collects tax on behalf of the Palestinians and makes month-to-month transfers to the PA. But a dispute broke out over funds within the wake of the Oct. 7 assault by the Palestinian resistance group Hamas.
The short-term resolution will enable funds to renew and forestall a monetary collapse for the PA, enabling it to pay salaries and supply important companies similar to colleges and well being care, Norway’s authorities mentioned.
Norwegian Prime Minister Jonas Gahr Store hailed the settlement.
“With our assistance to this solution, the Palestinian Authority will be able to pay salaries, thus making it possible to continue to provide essential services to the Palestinian population, keep schools open and ensure that health workers are paid,” Store mentioned within the assertion.
“This is critical to promoting stability in the region and for the Palestinian Authority to have legitimacy among its people.”
Under the answer agreed with Israel and Palestinian officers, Norway will function an middleman for holding revenues that Israel has withheld since Oct. 7.
“The Palestinian Authority is then willing to accept the other funds,” Norway mentioned.
The portion of the income Norway will hold equals the portion that Israel estimates for Gaza, mentioned a Norwegian Foreign Ministry spokesperson.
Israel’s indiscriminate navy marketing campaign in Gaza has killed round 29,000 folks, principally girls and kids, based on native well being authorities.
Hamas’ Oct. 7 assault killed about 1,160 folks in Israel.
Accessing the income is essential to the survival of the PA, which workouts restricted self-rule within the Israeli-occupied West Bank.
Several Western nations, together with the United States, additionally need the PA to play a job within the administration of the Gaza Strip ought to the warfare come to an finish.
On Nov. 2, Israel mentioned it might proceed with a tax income switch to the PA within the West Bank however would withhold funds certain for Gaza, dominated by Hamas however the place the PA helps cowl public sector wages in addition to medication and social help applications.
But on Nov. 6, the PA mentioned it needed the cash in full and wouldn’t settle for circumstances that stop it from paying its workers. It is estimated to spend some 30% of its funds in Gaza.
On Jan. 21, Israeli officers mentioned the Israeli cupboard had accredited a plan for frozen tax funds earmarked for the Gaza Strip to be held by Norway as a substitute of transferred to the PA.
Source: www.dailysabah.com