A senior Western diplomat says that Palestinian Authority President Mahmoud Abbas was wrong to reject the tax funds Israel was willing to transfer because it planned to deduct PA debts to Israeli companies.
According to the diplomat, who spoke to Israel Radio anonymously, Netanyahu’s decision to transfer the funds was a clear signal that he was willing to make an effort to restore trust with Abbas and restart a working relationship.
The international community, the diplomat added, worked hard to convince Israel to unfreeze the tax money, for fear that the PA was heading into financial collapse.
Israel withheld tax money it collects on behalf of the PA for several months in protest of the PA’s unity government with Hamas as well as its decision to seek membership of the International Criminal Court at The Hague.
Earlier this month Israel offered to unfreeze the tax funds, but not before deducting a portion of the sum in order to make up for some of the debt owed by the PA to Israel companies including the Israel Electric Corporation. The PA refused.
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