Vision to Reality: The Reut Blog

Writing in the Washington Institute, Mohammad Yaghi describes the financial crisis gripping the Fayyad led Palestinian Authority (PA) warning that unless certain moves are taken the PA is in danger of collapse, an event that would have huge strategic significance for Israel.

The PA was established as part of the Interim Agreement between Israel and the PLO and provides services to the residents of the West Bank and Gaza. The Authority, as well as various international organizations working in the West Bank create a situation of Deluxe Occupation for Israel – a situation in which an entity which despite officially being considered an occupier of the West Bank, Israel does not carry the full responsibility for funding and governing it.

The PA’s is thus an asset for Israel and its collapse would have huge strategic significance.

Meanwhile, the Jerusalem Post reports on a ruling by a Jerusalem court that a US court decision ordering the PA to pay the family of an American citizen killed in a Palestinian terror attack over $116 million in compensation is enforceable in Israel.

This ruling seems short sighted for two reasons;

Firstly, it is in Israel’s political interests that the cash stricken PA does not collapse.

Secondly, in light of increased speculation regarding the Palestinians reversing their position towards the two state solution and adopting the mantra of one man, one vote, Israel’s should do all it can to promote the PA as a state (thus making a Palestinian inversion towards two states less likely). One way this could be achieved would be by claiming that like other sovereign entities, the PA enjoys immunity from prosecution and being sued.

The ruling by the Jerusalem court, (as well as a previous ruling by the Ministry of Foreign Affairs) does little to promote this interest.