Finance Minister Smotrich Refuses to Sign Concessions for Palestinians
Prime Minister Binyamin Netanyahu and Defense Minister Yoav Galant pushed for concessions for the Palestinians to be presented to the cabinet without a vote. However, Finance Minister Bezalel Smotrich announced today that he will not sign any decisions that require his signature.
The specific decision in question is the postponement of the Palestinian Authority’s tax debts to Israel for two years, which amounts to half a billion dollars. Smotrich is not willing to approve this deferment or any other economic initiatives in favor of the Palestinians.
A security official criticized Smotrich, stating that the cabinet’s announcement of benefits for the Palestinian Authority is an explicit commitment to the American government. The official emphasized that the Minister of Finance does not and will not hold control over this government. The American government has been promised that the economic benefits to the Palestinian Authority will be approved in the near future.
Furthermore, the head of the Shin Bet, Ronan Bar, met with senior Palestinian Authority official Hussein al-Sheikh to discuss strengthening the Palestinian Authority, enhancing security coordination, and de-escalation efforts.
Prime Minister Netanyahu will have to find a way to convince Smotrich to agree to the concessions. Despite the American boycott of Smotrich, it is expected that Netanyahu’s decision will carry weight. The cabinet convened to discuss relief for the Palestinians shortly after an attack in Tel Aviv, but officials expressed difficulty in making decisions and voting for them at this time.
The cabinet attempted a “trick” by informing the ministers first and planning to release a formal announcement later in the week. Among the decisions made were the expansion of operating hours at the Allenby crossing, the comparison of tolls at the crossing to facilitate Palestinians receiving money, and the promotion of the industrial area in Tarkamiya near Hebron. Additionally, the discussion led to the freezing of the Palestinian Authority’s tax obligations in Israel for one year.
Although there was no official vote yet, it was expected that the cabinet would approve these decisions during the week. Minister Smotrich and Minister Ben Gvir expressed their opposition to the concessions, with Smotrich citing his role as Minister of Finance as a reason for his stance. Ben Gvir protested the timing of the concessions, given the recent attack.