The European Union has reportedly presented the Palestinian Authority with an ultimatum conditioning EU financial aid to Ramallah on the PA accepting tax revenues collected by Israel on its behalf, Axios reports Wednesday, citing Israeli and European officials.
The tax collection mechanism was set up as part of the 1993 Oslo Accords and the monthly tally of these taxes averages on $100 million.
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The cash-strapped PA has refused to accept hundreds of millions of dollars in tax revenue, first over Israel's intention to deduct the stipends Ramallah pays terrorists and their families from the tally, and later over Israel's intention to extend sovereignty to large parts of Judea and Samaria and the Jordan Valley under the US Middle East peace plan – a move that has been temporarily suspended as part of Israel's peace deal with the UAE.
The PA's prolonged intransigence on the matter, however, has considerably exacerbated its financial woes.
According to Axios, EU foreign policy chief Josep Borrell told PA President Mahmoud Abbas Europe would not offer financial assistance or loans until the PA accepts the taxes. Jordan and Egypt have conveyed similar messages, it says.
Borell also encouraged Abbas to resume its coordination with Israel, but received no clear answer on the issue at this time, the report said.
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