EU condemns Israeli move to freeze Palestinian tax transfers

The EU criticized Tuesday Israel’s decision to freeze Palestinian Authority tax revenues as a punitive measure against Ramallah and called on both sides to avoid steps that could undermine peace efforts.

The tax freeze “runs counter to Israel’s obligations,” agreed in 1994 following the Oslo peace accords, European Union foreign affairs head Federica Mogherini said.

“An effective Palestinian Authority, committed to non-violence and a peaceful resolution of the conflict, is a key element for a two-state solution,” Mogherini said in a statement.

Israel announced Saturday that it would suspend tax transfers to the PA after the Palestinian leadership applied to join the International Criminal Court in The Hague to pursue war crimes prosecutions against Israelis.

Without directly mentioning the Palestinian bid to join the ICC, Mogherini said that “recent steps taken … could aggravate the already tense situation on the ground and bring them further away from a negotiated solution.”

“Both sides should refrain from taking actions which could raise obstacles to the rapid return to the negotiations,” she added.

She said the EU’s financial contribution to the PA and its beleaguered economy could be endangered by Israel’s move to withhold the money.

The United States has similarly condemned the Israeli tax freeze but also cautioned that any action taken by the Palestinian Authority at the ICC against Israeli figures would have “implications.”

On Monday, the State Department said the Israeli measure “raises tensions,” which Washington was opposed to.

“What we are trying to avoid here is a back and forth tit-for-tat,” State Department Spokeswoman Jen Psaki said.

Israeli President Reuven Rivlin also came out against the move on Monday.

“Freezing taxes cannot be useful either for Israel or for the Palestinians,” Rivlin told ambassadors accredited to Israel in a speech Monday.

In his talk, Rivlin said that Palestinian Authority President Mahmoud Abbas “continues to reject direct negotiations and tries to impose a deal by force,” adding that such an approach “warrants sanctions.”

“Sanctions against the PA should be in line with Israeli interests, and a tax freeze is not,” Rivlin said.

Israel froze some $127 million in tax revenue due to the Palestinian Authority after it applied on Friday to join the ICC, the world’s only permanent war crimes court, at The Hague.

Israeli officials suggested on Sunday that the tax freeze was only the first of a series of punitive measures it could take against the Palestinian government. Prime Minister Benjamin Netanyahu also told his cabinet that he would not allow soldiers to be “hauled” in front of the court.

The Palestinians moved to join the court after suffering a defeat in the UN Security Council earlier in the week, which rejected a resolution that called on Israel to pull out of the West Bank and East Jerusalem within three years.

On Thursday, Abbas asked the International Criminal Court to investigate Israel for war crimes allegedly committed during the 50-day war with Hamas and other Gaza terror groups last summer.