In his announcement, Smotrich said that he would take financial steps which would topple the Palestinian Authority in Judea and Samaria, where the European countries have declared they would recognize "Palestine."
Among these steps is a complete halt to the transfer of tax money to the Palestinian Authority, and no extension of the indemnity extended to banks which transfer money to banks in Judea and Samaria.
Smotrich also called on Prime Minister Benjamin Netanyahu to take a number of financial steps which will deal a critical blow to the Palestinian Authority and may cause its economic collapse within a matter of months.
If Smotrich implements his plan, Israeli banks will cease cooperation with PA institutions, leading to a significant decrease or total cessation of the import of crucial products such as food products, electricity, and water to Judea and Samaria. The salaries of PA employees will also not be transferred if the financial cooperation between Israeli and PA banks grinds to a halt.
Speaking to the Financial Times, senior US and European officials warned of an "economic catastrophe" which would topple the PA.
US National Security Adviser Jake Sullivan said at a news conference, "I think it’s wrong on a strategic basis, because withholding funds destabilizes the West Bank. It undermines the search for security and prosperity for the Palestinian people, which is in Israel’s interests. And I think it’s wrong to withhold funds that provide basic goods and services to innocent people." READ MORE
