Smotrich’s Plan May Cut Palestinian Banks, Risking PA Collapse

In Sharsky’s opinion, the question is not so much if the undermining the Palestinian economy a real consequence of the hammer is handed policies implemented by the new Israeli government but rather if it is being planned or is already underway by Smotrich and the current government. Such were the fears of American officials toward the far-right Israeli Finance Minister Bezalel Smotrich. Smotrich, known in the past for threatening to impose sanctions against the Palestinian Authority (PA), is feast aware that even if that is the case, as of October 2018, he would be still thinking about severing Palestinian banks from the Israeli banking system. It does not seem to escape any agreements with the Palestinians and is likely to make the conditions of the West Bank even more than arduous.

Sponsoring terror funding, for example, cutting financial ties of Palestinian and Israeli banks in the occupied north part of the West Bank and controlling able forcing to cut back revenues due to withholding them from eruption of violence or war could take over the PA situation. It is perhaps worth differing between formal and informal acknowledgement of the control with formal recognition of occupation. Such funds are very essential for conducting the business of the Palestinian Authority. In fact, a situation of cutting cross-cultural ties between Palestinian and Israeli in effect implies the PA risking over these funds which are depended on populations numbering around two point nine million Palestinians living areas.

Israeli Blockade Threatens Aid

International aid also has an important impacting the Palestinian economy. Still, there will be challenges in disbursement of international donors’ funds in the absence of access to Israeli banks; the difficulties will be mainly in Gaza and the West Bank. U.S. and Western officials fear Smotrich’s refusal to extend the vital peace agreement due to expire on October 31 would trigger calamities in the Palestinian Authority which would still make the region unsafe.

There have been meetings between G7 countries’ finance ministers recently and one of the topics of discussion was how far could the actions of Smotrich go. According to an Axios article beforehand, the Israeli minister has demanded an external examination of the Palestinian banking institution before agreeing to the extension of the agreement for another year.

Smotrich has a lot to be remembered for such as defying demands for the release of the taxes collected on behalf of Palestinians and being unapologetically pro more Israeli settlements extended to West Bank. Making it clear that he is a settler and an extreme right-winger has aggravated the situation in the area. If indeed Smotrich carries out his plan, it would choke the life out of the Palestinian population and impose tighter Israeli restrictions in the occupied West Bank.