Smotrich says he’ll cut off transfer of PA funds after 3 European nations set to recognize Palestinian state

Sam Sokol is the Times of Israel's political correspondent. He was previously a reporter for the Jerusalem Post, Jewish Telegraphic Agency and Haaretz. He is the author of "Putin’s Hybrid War and the Jews"

Religious Zionism party leader Finance Minister Bezalel Smotrich leads a faction meeting in northern Israel, May 19, 2024. (Ayal Margolin/Flash90)
Religious Zionism party leader Finance Minister Bezalel Smotrich leads a faction meeting in northern Israel, May 19, 2024. (Ayal Margolin/Flash90)

Following three European nations’ announcements that they will recognize a Palestinian state, Finance Minister Bezalel Smotrich demands that Prime Minister Benjamin Netanyahu impose “harsh punitive measures” against the Palestinian Authority, including cutting off Ramallah financially.

“At the last cabinet meeting, many ministers, including myself, raised an unequivocal demand for harsh punitive measures against the Palestinian Authority for its unilateral actions against Israel, including its pursuit of unilateral recognition” and its support of legal cases against Israel in The Hague, Smotrich writes to Netanyahu.

But despite the diplomatic move by Ireland, Spain and Norway and International Criminal Court chief prosecutor Karim Khan’s decision to seek arrest warrants against Netanyahu and Defense Minister Yoav Gallant along with Hamas leaders, officials in the National Security Council have pushed back against measures to punish Ramallah, Smotrich complains.

Smotrich informs the prime minister that he intends to take immediate action to cut off the transfer of funds to the Palestinian administrative body and says that he will not extend the indemnity given to the Israeli banks that transfer funds to banks in the West Bank.

Beyond that, Smotrich calls on Netanyahu to impose “additional economic sanctions on PA senior officials and their families” and to cancel an arrangement, known as the “Norwegian outline,” used to indirectly fund Ramallah.

In January, the cabinet approved the plan to transfer to Norway Palestinian tax funds that are designated by the Palestinian Authority for transfer to its staff in Gaza, but which Israel had refused to release out of concern that they could reach the Hamas terror organization.

In addition, the far-right minister demands that Netanyahu take a series of steps to bolster Israeli settlement in the West Bank, including immediately approving 10,000 new housing units, establishing a new community for each country recognizing Palestine and advancing a government proposal to strengthen settlement.

Most Popular