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Israel, PA finance ministers discuss increased economic and infrastructure cooperation

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Israel’s Finance Minister Moshe Kahlon has met with the Palestinian Authority (PA) counterpart Shukri Bashara for only the second time, in order to discuss greater cooperation to boost the Palestinian economy and infrastructure.

Relations between Israel and the PA have been fraught over the last several months, with Israeli leaders having accused PA President Mahmoud Abbas of stoking the current violence with incendiary rhetoric. At least 23 Israelis have been killed in near-daily attacks by Palestinians since the start of October.

However, according to Kol Israel radio, Kahlon and Bashara met yesterday for the first time since the wave of attacks began. They discussed the possibility of handing tens of thousands of extra permits for Palestinians to work in Israel, in addition to the 60,000 which currently exist. In addition, they are thought to have discussed the potential to relieve Palestinian youth unemployment and also plans to boost Palestinian infrastructure. It is understood that a package of measures is up for discussion, on the condition that the current level of violence is significantly reduced.

Israeli leaders have been alarmed recently at the prospect that the PA could collapse. It was reported earlier this month that Israel’s diplomatic-security cabinet held two lengthy meetings to discuss the possibility in light of the ongoing violence, economic stagnation in the West Bank and political difficulties within the Palestinian leadership.

However, in a robust response, PA President Abbas said in a speech in Bethlehem that “no one should dream of its [the PA’s] collapse.” The Kol Israel report says that Israeli security chiefs have now updated their assessment and believe that Abbas also sees the current violence as a threat to his own rule and has instructed the PA’s security apparatus to calm tensions. It is believed that there is ongoing security cooperation between Israel and the PA. Kol Israel says that PA forces have recently helped uncover Hamas cells in the West Bank, including one in Hebron.