On Friday, twelve nations—including Saudi Arabia, Japan, France, Britain, and Spain—announced a new alliance to provide financial help to the Palestinian Authority, which is struggling financially as Israel withholds its tax income.
According to a statement from the Spanish foreign ministry, the Emergency Coalition for the Financial Sustainability of the Palestinian Authority “was established in response to the urgent and unprecedented financial crisis” facing the PA.
“All of which are indispensable to regional stability and to preserving the two-state solution,” the statement continued, adding that its goals include stabilizing the Ramallah-based body’s finances, maintaining its capacity to rule, deliver necessary services, and uphold security.
The statement mentioned past “significant financial contributions” and pledges of “sustained support” from the coalition — which also includes Belgium, Denmark, Iceland, Ireland, Norway, Slovenia and Switzerland — without specifying the quantities or countries.
Palestinian Prime Minister Mohammad Mustafa’s office has said donors pledged at least $170 million to finance the PA.
Saudi Arabia will provide $90 million, state media quoted Foreign Minister Prince Faisal bin Farhan as saying late on Thursday.
Acknowledging the insufficiency of short-term aid, Friday’s statement said the countries would work with international financial institutions and partners “to mobilise resources, support ongoing governance and economic reforms, and ensure full transparency and accountability”.
Israel collects tax revenues on the PA’s behalf under the 1994 Paris Protocol.
The PA claims that poverty has increased and that basic services including health and education have deteriorated since Israel withdrew tax payments from it following the start of the Gaza war in October 2023.
Israel claims that a portion of the funds it withholds will be used to reimburse Palestinians for expenses like electricity sales.
However, in order to avoid the establishment of a Palestinian state, far-right Finance Minister Bezalel Smotrich, who halted all payments to the PA four months ago, has declared that he will use “economic strangulation” to try to topple the Palestinian administration.
“The ministers demand that Israel immediately release all Palestinian clearance revenues and cease any measures that obstruct or weaken the Palestinian Authority or risk its collapse,” the Spanish statement added.
The announcement came as traditional allies of Israel including France and Britain were among a string of countries that recognised a Palestinian state at this week’s UN General Assembly in New York.
