German minister urges Israel to release Palestinian tax funds

German Development Minister Reem Alabali Radovan has urged Israel to release withheld tax revenues owed to the Palestinian Authority (PA), warning that its collapse could fuel instability in the West Bank.

Speaking to dpa during a visit to Jordan, Alabali Radovan said the PA, led by President Mahmoud Abbas, is under unprecedented political and economic pressure. Israel has a responsibility to immediately transfer the taxes due to the Palestinians, she said.

Israel collects customs duties and taxes on behalf of the PA under the 1990s Oslo peace accords but has withheld transfers since May. Palestinian officials say the freeze has crippled their ability to pay salaries and maintain services, a situation experts warn militant group Hamas could exploit.

Alabali Radovan said Germany would consider providing additional budgetary support to the PA and discuss further aid with European partners.

Without a functioning PA, she said, there would be no realistic chance for a two-state solution, meaning Israel and an independent, democratic Palestinian state living peacefully side by side.

Israel's Prime Minister Benjamin Netanyahu has recently rejected any role for both Hamas and the PA in governing Gaza after the war, while favouring a civilian administration that would maintain peaceful relations with Israel.

Berlin argues the PA, despite needing reforms, should be involved in Gaza's future to avoid a power vacuum.

Germany continues to press for a ceasefire in Gaza and the release of Israeli hostages taken by Hamas and other Islamist groups on October 7, 2023.