Brussels: The European Union (EU) called on the Israeli occupation to immediately reverse its decision to cancel a waiver related to Palestinian banks, warning that the move could endanger the already fragile Palestinian financial system.
According to Kuwait News Agency, EU Spokesperson Anouar Al-Anouni expressed deep concern over Israel's finance minister Smotrich's instruction to cancel the waiver on cooperation with Palestinian banks. This decision could sever the Palestinian banks from the Israeli financial system, further devastating the already struggling Palestinian economy and potentially leading to the collapse of the Palestinian Authority.
The EU has urged the Israeli occupation to reverse this decision promptly, emphasizing that any action could precipitate the collapse of the Palestinian authority. On Tuesday, the far-right Finance Minister Smotrich of the Israeli occupation announced the cancellation of the waiver, which had previously enabled Israeli banks to conduct transactions with Palestinian counterparts.
This mechanism was crucial for maintaining vital financial transfers, including the transfer of tax revenues that the Israeli occupation government collects on behalf of the Palestinian Authority.
Observers have cautioned that the termination of this waiver by the Israeli occupation could have disastrous consequences for the Palestinian economy. This is particularly due to the Palestinian Authority's heavy reliance on the Israeli banking system, given its lack of a central bank or national currency.