Millions of dollars in Palestinian tax revenues are to be distributed to Israeli "victims of terrorism", announces Israel's Finance Minister Bezalel Smotrich.
The decision has been met with sharp criticism from Foreign Minister Tobias Billström (The Moderate Party) who calls it extremely serious.
The sum in question is approximately 35 million dollars, roughly 367 million kronor, in tax revenues collected by Israel on behalf of the Palestinian Authority (PA).
However, the money will not be paid out to Palestinians, announced Israel's far-right Finance Minister Bezalel Smotrich on social media on Thursday. He simultaneously accused the PA, which governs the occupied West Bank, of "encouraging and rewarding terrorism".
"In accordance with the verdicts that awarded compensation to the victims of terrorism, we are allocating the same amount from the PA's funds and transferring the allocated money to the families of the victims of terrorism", Smotrich wrote on X.
"Belongs to the Palestinian Authority"
The US has condemned the decision in strong terms, emphasizing that the country believes the money belongs to the Palestinian people.
The funds should be transferred to the Palestinian Authority immediately. They should not have been blocked. They should not be delayed, says Matthew Miller, spokesperson for the US State Department, and continues:
We think it's an extremely reckless decision by the minister.
Sweden's Foreign Minister Tobias Billström (The Moderate Party) is also strongly critical of the decision.
This is extremely serious. This money belongs to the Palestinian Authority, they need the money to be able to offer basic services to the Palestinian people, says Billström, adding that the PA is already under severe economic pressure.
Threatens Stability
According to Billström, Israel's actions also threaten stability on the West Bank in the long run.
This is not in the interest of the West Bank or Israel. This is something that we, from the government's side, do not think should be carried out, the money should instead be paid out, he says.
According to the peace agreement partially negotiated by Norway in the 1990s, Israel collects taxes on behalf of the PA. Israel has, however, blocked the transfers since the extremist group Hamas's terrorist attack on October 7, which led to the ongoing war in Gaza.
