Mustafa Calls for Pressuring Israel to Release Held Tax Revenues During Donors Meeting in Brussels

SadaNews - Prime Minister Dr. Mohammed Mustafa called on the group of donor countries and international partners for Palestine to pressure for the release of the withheld tax revenues, and to provide immediate and direct support for the public budget for six months, as announced in the emergency mechanism by Saudi Arabia, France, Norway, and Spain, including mechanisms to guarantee the issuance of bonds for Palestinian banks to provide liquidity and better manage public debt.

The Prime Minister stressed the necessity of involving additional donors in financing, as well as making efforts to protect the Palestinian financial system by maintaining correspondent banking lines with Israel and raising the annual money transfer ceiling in shekels, supporting the reconstruction framework for Gaza led by the Palestinian Authority, and providing early pledges to the trust fund, starting with the needs of the early recovery phase, as these steps will contribute to ensuring the continuation of service delivery, making the reconstruction of Gaza serious and real, and protecting the two-state solution.

This came during his speech at the meeting of the group of donor countries and international partners, which was held today Thursday, at the headquarters of the European Commission in the Belgian capital, Brussels, with the participation of over 60 countries and international institutions, attended by Minister of Planning and International Cooperation Dr. Estephan Salameh, the Palestinian Foreign Ministry's Deputy Minister for Political and Legal Affairs Omar Awadallah, and the Ambassador of the State of Palestine to Belgium and Luxembourg and the European Union, Amal Jado Shaka'a.

Mustafa thanked the European Union for holding this meeting, and for its ongoing support for the Palestinian people and Palestinian institutions, expressing his deep appreciation to all partners, including the International Donors Coordination Committee that has maintained its support for Palestine during this extremely difficult period.

The Prime Minister said: "This initiative from the donor group for Palestine is part of a broader international effort that has crystallized over the past year, starting with the high-level international conference on the peaceful settlement of the Palestine issue and the implementation of the two-state solution in New York, co-chaired by France and Saudi Arabia, where an international alliance for financial sustainability for Palestine was formed to prevent financial collapse and protect the continuity of institutions."

He added: "The emergency alliance for financial sustainability for Palestine builds on this collective momentum, the new plan is based on more than three decades of support provided by the European Union, bringing partners together on the central issues we face today, which are maintaining the financial stability of the Palestinian Authority, enhancing the agenda for reform, supporting economic recovery in the West Bank, and ensuring a coherent and coordinated approach to the reconstruction of Gaza under a single and unified Palestinian governance."

The Prime Minister noted that today's discussion is not limited to budget support or reconstruction, but addresses the very foundations of peace, which are the Palestinian Authority and the institutions of the future Palestinian state.

Mustafa continued: "The reunification of Gaza and the West Bank under one legitimate government, one law, and one public administration is not just a slogan, but it is the practical path towards peace and stability; without it, recovery will remain fragmented, and hope will remain hostage to division, and the restoration of unity is not separate from the two-state solution, which is the only solution to achieve stability, dignity, and security for all peoples of this region."

He stated: "The State of Palestine welcomed the adoption of Security Council Resolution 2803, considering it an important step towards a sustainable ceasefire in the Gaza Strip and the unhindered delivery of humanitarian aid, and what is now important is to implement this resolution immediately in a manner that protects our people, prevents displacement, ensures full withdrawal, and brings the Palestinian Authority back to Gaza, within the framework of the unity of Gaza, the West Bank, and East Jerusalem under one legitimate government, to fully assume its responsibilities and work with all partners in a way that supports Palestinian sovereignty and provides a real political path."

The Prime Minister reviewed the progress and steps that have been implemented within the framework of the national development and reform program, designed in partnership with the European Union, the World Bank, and major donors, where the social protection law has come into effect, in a transparent data-based system, activating the national registry and independent external auditing.

He said: "The education modernization initiative has been launched and is being implemented to align with UNESCO standards; a new interactive digital education system has been introduced, teachers are being trained, and digital tools are being used."

In the realm of governance, Mustafa added: "We have merged and closed several institutions, strengthened anti-corruption measures, renewed security leadership, and introduced merit- and competition-based senior appointments."

As for the financial aspect, the Prime Minister indicated that the value-added tax law and tax reform package are in the implementation stage, public financial management is being digitized, net lending collection operations have significantly increased, and old debts of local government bodies are being settled.

Mustafa stated: "We are moving forward in our political reforms, and the process of drafting the interim constitution for the transition from authority to state has reached an advanced stage, and the cabinet has approved a new local elections law, with the Central Elections Commission set to manage the local elections scheduled for April 2026."

The Prime Minister emphasized that the financial crisis of the Palestinian Authority is a direct result of Israel withholding Palestinian tax revenues, which is politically motivated, as declared by high-ranking Israeli officials to destabilize the Palestinian Authority and push it into collapse.

Mustafa appreciated the budget support provided by partners for Palestine, including the recent support from the European Union, its member states, and other European and Arab countries, especially Saudi Arabia, and the World Bank. Nevertheless, the financial crisis remains deep and requires a sustainable solution as agreed upon in the framework of the emergency alliance of the financial sustainability group.

The Prime Minister added: "Alongside the financial crisis, there are two additional urgent issues exerting direct pressure on the stability of the Palestinian banking system; firstly, the correspondent banking links with Israeli banks still face general threats of non-renewal, and secondly, the accumulation of surplus shekels in our banking system has led to significant liquidity pressure and real operational risks on the entire financial sector."

Mustafa affirmed that the Palestinian Authority is ready and prepared to lead the recovery and reconstruction in the Gaza Strip, as the Arab plan, which is internationally endorsed and supported, provides the political umbrella, and a comprehensive assessment and damage and needs inventory have been completed with the assistance of the World Bank last month.

The Prime Minister pointed out that the Gaza recovery and reconstruction program recently completed by the government translates the Arab plan and the damage and needs inventory into 56 programs in the fields of social services, housing, infrastructure, economy, and governance, with an estimated budget of $67 billion over five years.

He said: "As a first phase of this program, the government has prepared a six-month early recovery plan, to be launched as soon as the ceasefire is established, focusing on essential services, debris removal, temporary housing, and providing jobs and small projects, so that Gaza can quickly transition from the relief phase to the recovery stage."

The Prime Minister added: "We have already begun early relief efforts through the government operations room for emergency interventions, working with our field institutions and international partners, including the Quartet and UN agencies, to address urgent needs and restore essential services.

He continued: "At the institutional level, the path is clear; there is an effective emergency operations room, and the Gaza reconstruction unit is currently based at the Ministry of Planning and International Cooperation, with funding flowing through a trust fund managed by the World Bank, and other European and UN mechanisms, to ensure transparency and oversight by donors."

The Prime Minister emphasized that the Palestinian government has not left the Gaza Strip at all, as the relevant ministries continued to provide health, education, social protection, and civil status services under one law and unified salaries, with the government operations room currently coordinating activities of more than fifty institutions, managing shelters, distributing aid, and removing debris.

Regarding developments in the West Bank and settler violence, Mustafa said: "Since October 2023, Israel has killed more than 1,070 Palestinians, including 217 children, amidst military operations in cities, villages, and refugee camps, leading to the displacement of tens of thousands of our people. Settler violence has escalated to unprecedented levels, with over 5,000 attacks this year alone, including killings, house burnings, uprooting thousands of olive trees, and terrorizing citizens, in an environment of almost complete impunity, sometimes with open encouragement from extremist ministers."