An achievement for Smotrich:
the political and security cabinet approved today (Sunday) the outline concerning the tax money that Israel collects for the Palestinians in Gaza.
At the heart of the outline is the precedent principle that the funds will not be transferred in any way to Gaza or the PA, but will be kept in trust with a third party - most likely Norway.
Finance Minister Bezalel Smutritz: "If there is anyone who thinks we will transfer a shekel to the Nazis in Ramallah so that they will transfer it to the Nazis in Gaza - he does not know where he lives"
The wording of the decision received by Israel today states that "the third country (Norway) will announce that it respects the decision of the Israeli cabinet according to which the funds to Gaza will be frozen in order to prevent their transfer by the Palestinian Authority to Gaza in view of the control of the terrorist organization Hamas in the Strip."
It was also stated in the cabinet decision that the US is also committed to the principle that prevents the transfer of funds to Gaza.
"This decision will come into effect after a letter from the US government stating that it will act to support the implementation of this arrangement."
Gallant.
Insisted on allowing the transfer of the funds, on the grounds that they are essential for the survival of the authority, photo: Shahar Yurman
The agreement was reached in intensive negotiations last week in talks between Prime Minister Netanyahu, his associate Minister Ron Dermer, senior officials of the American administration led by Ambassador Jack Lowe and Finance Minister Bezalel Smotrich.
The Minister of Finance insisted on the principle that the funds, at the rate of approximately 275 million shekels per month, will not reach the Gaza Strip in any way, including not to the Palestinian Authority's employee apparatus in the Gaza Strip.
This is despite the demands of the American administration, Defense Minister Galant, Shin Bet chief Ronen Bar, to allow the transfer of the funds, on the grounds that they are essential for the PA's survival. Smotrich insisted that Hamas is the one who actually controls the Palestinian Authority's mechanism in Gaza, therefore transferring the money would sabotage the effort the war and will help Hamas.
The authority is part of the problem, not part of the solution
According to this principle, the agreement stipulates that the funds intended for the Palestinian Authority will be kept in trust by a third party and will not be transferred in any way to the Palestinians. It is also stipulated that the third party will not transfer identical amounts from its own balances to the Palestinians against the amount that Israel refuses to give.
A third mechanism, which the Americans also signed, states that if the agreement is violated and the third party transfers another budget to the Palestinian Authority or Gaza, the Minister of Finance will have the right to stop all transfers of funds to the Palestinian Authority. It should be noted that during the talks with Israel, the Americans themselves admitted that it is forbidden to transfer the The funds for the PA because of the Taylor Force law.
This law states that as long as the PA pays the terrorist salaries, the government is prevented from supporting it financially.
It should be noted that it is still unclear whether Norway or the Palestinian Authority itself will agree to the settlement. Therefore, it is possible that it will not come to fruition in the end. It should be noted that the agreement has precedential significance: the American administration actually agrees in it that the Palestinian Authority in Gaza is part of the problem and not part of the solution.
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