Israel's concern over the reconciliation efforts between Palestinian Authority and Islamist group Hamas prompted the Jewish nation on Sunday to suspend the transfer of $89 million in tax revenues to the PA.
“The agreement that was initiated recently between Hamas, which calls for the destruction of the state of Israel, and the Fatah movement [the dominant faction in the PA], must concern not only every Israeli, but all those in the world who aspire to see peace between us and our Palestinian neighbours,” said Prime Minister Benjamin Netanyahu. He said peace is possible only with those who want to live in peace alongside us.
Israel's Finance Minister Yuval Steinitz told Army Radio that Israel is suspending a routine handover of $89 million in customs and other levies that Jerusalem collects on behalf of the Palestinians under interim peace deals.
He said Israel feared the money would be used to fund Hamas. The crucial decision comes days after Palestinians announced a new unity deal between the western-backed PA led by President Mahmoud Abbas of the Fatah movement and Islamist Hamas, which has rejected calls to recognise Israel.
