BICOM

The Palestinian Authority (PA) has rejected a proposal by the European Union that payments to Palestinian prisoners and their families should be integrated into the Palestinian welfare system.

The proposal was made as part of an effort by the EU to prevent the financial collapse of the PA, after the PA refused to accept tax revenues collected for it by Israel.

The EU Commissioner for the European Neighborhood and Enlargement Negotiations, Johannes Hahn, whose office is in charge of EU financial support to the PA said: “We are all aware of the fiscal crisis the PA is facing and of the potential human, social and security consequences. Both sides need to move towards a solution.” He continued: “Israel’s decision to withhold clearance revenues violates current arrangements. At the same time, we do not support the system of Palestinian payments to ‘prisoners and martyrs.”

Hahn has offered a compromise whereby the prisoners and their families would be integrated into the PA’s social welfare system, removing any financial incentive for terrorism. The head of the PLO Prisoners Affairs office, Qadri Abu Bakr said:  “We’re talking about a very principled issue for the Palestinian people. The prisoners are freedom fighters and from our perspective they have the status of security forces. They are getting a pension because they are security personnel.”

The Ad Hoc Liaison Committee, a body which meets twice per annum to discuss donor funding to the PA, met earlier this week to try and find a solution to the PA’s funding crisis, but failed to find a resolution. The 15-member committee is chaired by Norway and includes representatives from the EU, the US, the UN, Arab League, Israel and the PA.

The funding crisis was sparked when Israel announced it would withhold from the PA’s tax revenues an amount equivalent to what the PA spends on salaries to convicted terrorists and their families. The PA responded by refusing to accept any tax revenues from Israel, which make up around 65 per cent of its budget according to the UN.

According to Channel 12 News in January 2019 the PA’s revenues totalled NIS 1.4 billion. By February, revenues dropped to just NIS 633 million. The PA slashed its expenditure from NIS 1.6 billion to a mere NIS 678 million with 160,000 PA officials only receiving half their salaries as a result.