The political-security cabinet discussed this evening (Thursday), among other things, an issue that causes a dispute between Israel and the United States. This is a decision that was made after the massacre on October 7, under pressure from Finance Minister Bezalel Smotrich not to include in the disposal funds (tax refunds on laborers’ work and movement of goods) that are transferred monthly to the Palestinian Authority the amounts intended for Gaza.
The US asked Israel to release the Palestinian tax money frozen by Smotrich
The difficult phone call – and Biden’s demand from Netanyahu report
As mentioned, the main point that will come up for discussion in the cabinet is the issue of transferring taxes to the Palestinian Authority. A lively discussion and perhaps an explosion is expected, because the Americans are pressing to transfer them. Blinken claimed in his meetings in Israel that the funds belong to the Palestinians and therefore Israel cannot withhold them. Smotrich announced in the morning that he was not going to approve their transfer.
In addition, the cabinet will also discuss the war management policy: this week there was an appeal by Gideon Sa’ar to advance the date of the discussion in order to discuss the war management policy. He is expected to demand answers from Netanyahu during the hearing. At the press conference this evening, Netanyahu did not provide concrete answers to the issues regarding the withdrawal of forces from parts of the Strip and provided general answers. Sa’ar mainly demands to discuss the withdrawal from the center’s camps in the Gaza Strip. Ben Gvir claims that the manner of managing the war is defeatist led by the limited war cabinet, and he wants to transfer decisions to the general cabinet.
In addition, the discussion will also discuss the issue of “the day after”. Officials in Israel confirmed to “Maariv” that they are aware of the organization to promote a “big plan” the day after, some of the details of which were revealed this morning in the world media.
Benjamin Netanyahu in the War Cabinet (Photo: Kobi Gideon, Chief of Staff)
Meanwhile, News 12 reported this evening that as part of the new mechanism for transferring funds to the Palestinian Authority, the money will be deposited in trust with a third country, and that is Norway. The US and Norway will guarantee that the money will not go to the Gaza Strip, nor will a ‘loan’ in the form of the money deposited in trust, and in case of violation of the agreement – all the funds at the disposal will be frozen.
Earlier, MK Avigdor Lieberman sent an urgent letter to the members of the political-security cabinet, regarding the IDF’s security concept: “In light of recent developments, on the northern and southern fronts, we must hold a comprehensive and in-depth discussion on the IDF’s security concept. Questions such as Israeli control of the Philadelphia route, which continues to serve as a central axis for smuggling into and out of the Gaza Strip, the equipping of fifty helicopters and one hundred airplanes as published in the media, or the establishment of additional tank brigades, require urgent discussion and clear answers.”
“In my humble opinion, the equipping of 75 aircraft is absolutely sufficient. The remaining budget can be transferred, in favor of re-equipping the land arm and promoting a missile force array to the required extent. Other issues are what comes before why and what is the order of priorities? In the State of Israel, unlike other countries in the world, the IDF Subject to the government and the cabinet, whose authority is by virtue of a government decision, therefore the overall responsibility is on every company and member of the political-security cabinet. It is your duty to hold an in-depth discussion on the above issues and make decisions immediately.”
The disposal funds make up about 65% of the total budget of the Palestinian Authority. The scope of the disposal funds is approximately NIS 800 million, of which approximately NIS 120 million is intended for the Gaza Strip. In November, after a high-profile confrontation with the Minister of Defense Yoav Galant to the Minister of Finance Bezalel Smotrichthe political and security cabinet made a decision to offset from the disposal funds transferred to the Palestinian Authority all the funds destined for Gaza, in addition to the offset carried out according to law of funds paid to terrorists and their families.
After the decision on the offset, the head of the Palestinian Authority Abu Mazen He announced that the Authority would not receive the settlement funds without Gaza money and the Authority refused to accept the monthly transfer from Israel. Meanwhile, ‘Maariv’ learned that in December the Palestinian Authority no longer objected and accepted the settlement funds which were once again transferred to it without Gaza funds.
Anthony Blinken, Abu Mazen (Photo: Ronaldo Schemidt/Pool via REUTERS)
At the same time, the American pressure is increasing on Israel to give up the offset and return to the transfer of the disposal funds in the full format, as before the seventh of October. The American administration came up with a series of creative ideas to solve the issue, including the proposal that the funds be deposited in the US or another third country.
Finance Minister Smotrich insists that Gaza funds will not be transferred to the Palestinian Authority and that for him this is a definite red line. Tonight, as mentioned, the issue will be discussed by the ministers of the political-security cabinet who will have to decide – will the funds be transferred to the Palestinian Authority again in the coming month while offsetting Gaza funds?