Movements to Rescue the Authority.. Will the Donor Conference Succeed in Lifting the Financial Siege on Palestine?

Exclusive to SadaNews: As the United Nations prepares to host the donor conference in New York on September 25, warnings of an imminent financial collapse threatening the Palestinian Authority are rising, amid Israel's continued detention of clearance funds and preventing the Palestinian delegation from participating in the conference. Statements from Palestinian Planning Minister Dr. Issam Salama reveal intensive efforts to rally international support, while the "Times of Israel" reported an initiative led by France, Norway, Spain, and Saudi Arabia to gather $200 million monthly to save the authority from collapse, with an international awareness that the crisis has transcended economic boundaries, becoming an existential threat to regional stability.

In statements followed by SadaNews, Planning and International Cooperation Minister Dr. Issam Salama confirmed that Palestinian preparations for the conference are ongoing through virtual meetings with participating countries to discuss the agenda and expected outcomes, emphasizing that the government is facing Israeli financial piracy affecting more than 68% of its revenues, necessitating emergency and extraordinary financial support to ensure the continued provision of basic services to citizens.

Salama clarified that the government is working with its international partners, primarily Norway, Spain, Saudi Arabia, and France, to rally urgent financial support amid the occupation's intransigence, which uses clearance funds as a political and economic pressure tactic, adding: "There are no signs of a breakthrough; Israel has made a political decision to destroy the Palestinian Authority."

In an official message directed by the Palestinian government to the international community, it demanded the immediate release of the detained clearance funds or direct support to cover operational expenses, stressing that its ongoing political, financial, and developmental efforts aim to establish an independent Palestinian state, rebuild the Gaza Strip, and ensure the entry of humanitarian aid.

Salama expressed hope that positive indicators would emerge on the ground during the current week, noting that it is too early to speak of tangible results so far, but he hopes these efforts will translate into practical steps.

$200 million for 6 months

In a related context, the "Times of Israel" revealed that France, Norway, Spain, and Saudi Arabia are leading international efforts to raise $200 million monthly for six months to save the Palestinian Authority from financial collapse, amidst Israeli Finance Minister Bezalel Smotrich's refusal, for the fourth consecutive month, to transfer clearance revenues that represent the main artery of the authority's budget.

The official message from the four countries, addressed to participants in the French-Saudi "Two-State Solution" conference, explicitly called for pressure on Israel to release the withheld funds, acknowledging that "Tel Aviv" may not back down, which led organizers to set a clear goal of raising the required amount to cover the operational costs of the Palestinian Authority.

The message confirmed that financial support is also essential to revive the private sector and ensure the continuity of vital commercial institutions, including Palestinian banks, noting that the four countries have already committed to providing this amount monthly, but they hope for the participation of other countries to share the financial burden.

Ministers of Foreign Affairs from the four countries praised the ambitious reform agenda being implemented by the Palestinian Authority, aimed at establishing a modern, transparent, and accountable state, asserting that Saudi Arabia's participation gives these efforts a strong boost of legitimacy and trust.

The message warned that the Palestinian Authority faces an existential threat due to the withholding of clearance funds, alongside the repercussions of the war in Gaza, the rising violence of settlers in the West Bank, and the ban on financial transfers to Palestinian banks, stressing that the establishment of a viable Palestinian state is essential for achieving peace and security in the Middle East.

The message concluded with a call for urgent action and rapid coordination in the coming days to form an "Emergency Coalition for Palestine", to avoid a financial collapse that would have catastrophic effects on Palestinian society and on regional and international stability.

It is worth mentioning that the donor conference is held twice a year every six months, and it is an international conference that involves several active international parties, including the United States, the European Union, the United Nations, Russia, Japan, Canada, and Saudi Arabia, in addition to Egypt and Jordan.