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Israel Activates Economic Measures In Favor of Palestinian Authority

Palestinian Prime Minister Mohammad Shtayyeh unveils the cornerstone for the Palestine wheat silos project in the village of Burham. (Wafa)
Palestinian Prime Minister Mohammad Shtayyeh unveils the cornerstone for the Palestine wheat silos project in the village of Burham. (Wafa)
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Israel Activates Economic Measures In Favor of Palestinian Authority

Palestinian Prime Minister Mohammad Shtayyeh unveils the cornerstone for the Palestine wheat silos project in the village of Burham. (Wafa)
Palestinian Prime Minister Mohammad Shtayyeh unveils the cornerstone for the Palestine wheat silos project in the village of Burham. (Wafa)

The Israeli government began to offer a number of economic facilities to the Palestinian Authority, lately approved under heavy pressure from Washington.

Israeli newspaper Israel Hayom reported on Sunday that Israel has recently slashed the gasoline tax it had been collecting from the Palestinian Authority by 50%, and has taken other measures to ease the financial situation in Ramallah.

Israeli authorities decided to collect a 1.5% gasoline tax instead of 3% from the PA, a measure that will save the Authority some 80 million shekels ($20 million) on an annual basis, according to the newspaper.

In 2023, the Israeli cabinet had taken other steps to support the Palestinian Authority's economy. These efforts include increased tax payments in favor of the PA, which now average 730 million shekels per month, compared to around half a million three years ago.

Early this year, the cabinet had announced it approved lowering the so-called “blue tax” that it levies from the PA on fuel transfers from three percent to 1.5%; raising the percentage of revenues it transfers to Ramallah from the fees it collects from travelers at the Allenby border crossing between the West Bank and Jordan; and expanding the list of tax-free imports that it facilitates on the PA’s behalf.

The Israeli government has only implemented the preliminary measures, while it said the list of tax-free imports will be updated later through the Israeli-Palestinian Joint Economic Committee.

The Committee was established under the Oslo Accords, with an aim to regulate the economic relations between Israel and the PA.

It has not convened since 2009, as a result of the political tension between the parties

The PA demands that Israel implements all three measures. Israel had previously refused, but lately accepted under ongoing pressure from the administration of US President Joe Biden.

Israeli officials said that Israeli far-right ministers, like Finance Minister Bezalel Smotrich, who oversees the Tax Authority and the Civil Administration in Israel, also approved this decision. They said the move aligns with the Biden administration's call to improve the economic situation in the Palestinian Authority, which is believed to be on the brink of economic collapse.

The three measures could add millions of dollars to the coffers of the PA, currently going through a deteriorating financial crisis, the worst since its establishment.

For the second consecutive year, the Palestinian Authority is paying partial salaries to most of its employees due to the crisis.

Last July, Prime Minister Benjamin Netanyahu's cabinet decided that Israel would work to prevent the collapse of the PA.

The Israeli government withholds huge amounts of money in tax revenues on the PA’s behalf and hands them to the families of Israelis killed in Palestinian attacks.

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Israel’s Retaliatory Responses to Houthis Must Begin by Drawing Intelligence Plan

A person inspects damage at the site where a projectile fired from Yemen landed in Tel Aviv on December 21, 2024 (EPA)
A person inspects damage at the site where a projectile fired from Yemen landed in Tel Aviv on December 21, 2024 (EPA)
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Israel’s Retaliatory Responses to Houthis Must Begin by Drawing Intelligence Plan

A person inspects damage at the site where a projectile fired from Yemen landed in Tel Aviv on December 21, 2024 (EPA)
A person inspects damage at the site where a projectile fired from Yemen landed in Tel Aviv on December 21, 2024 (EPA)

Israel is considering options to respond to repeated attacks fired from Yemen in the past few days, the latest of which was a Houthi missile strike that injured more than a dozen people in Tel Aviv.
But military experts say Israel should first consider an intelligence plan for confronting the new front after it faced significant difficulties in both defending against and responding to the Houthi attacks.
On Saturday morning, Houthis launched a missile that triggered sirens throughout central Israel at 3:44 am. It was the second attack since Thursday.
Israel's military said the projectile landed in Tel Aviv's southern Jaffa area, adding that attempts to intercept a missile from Yemen failed.
“The incident is still being thoroughly investigated,” the army said, adding that following initial investigations by the Israeli Air Force and Home Front Command, “some of the conclusions have already been implemented, both regarding interception and early warning.”
Israeli military experts say the recent Houthi attacks have revealed serious security gaps in Israel's air defense systems.
“The pressing question now is why none of the other of Israel’s air defense layers managed to intercept the warhead,” wrote Yedioth Ahronoth's Ron Ben-Yishai. “The likely explanation is the late detection and the flat trajectory, which prevented the operation of all available defense apparatus.”
He said these incidents might expose a critical vulnerability in the army’s air defense system protecting Israel’s civilian and military home front.
According to Ben-Yishai, two main reasons might explain Saturday’s interception failure.
The first is that the missile was launched in a “flattened” ballistic trajectory, possibly from an unexpected direction.
As a result, Israeli defenses may not have identified it in time, leading to its late discovery and insufficient time for interceptors to operate.
He said the second, and more likely scenario is that Iran has developed a maneuverable warhead.
Such a warhead separates from the missile during the final third of its trajectory and maneuvers mid-flight—executing pre-programmed course changes—to hit its designated target, he wrote.
And while Israel has launched initial investigations into the failure of Israeli defense systems to intercept the missiles, it is now examining the nature, date and location of its response.
When Houthis launched their first missile attack on Israel last Thursday, Prime Minister Benjamin Netanyahu warned them, saying, “The Houthis will learn the hard way.”
But Israeli political analyst Avi Ashkenazi wrote in the Maariv newspaper that Israel should look at reality with open eyes and say out loud that it cannot deal with the Houthi threat from Yemen, and has failed to face them.
Last Thursday, 14 Israeli Air Force fighter jets, alongside refuelers and spy planes, flew some 2,000 kilometers and dropped over 60 munitions on Houthi “military targets” along Yemen’s western coast and near the capital Sanaa.
The targets included fuel and oil depots, two power stations, and eight tugboats used at the Houthi-controlled ports.
But the Maariv newspaper warned about the increasing involvement of Iran in supporting the Houthi forces.
“Iran has invested more in the Houthis in recent weeks following the collapse of the Shiite axis, making the Houthi movement a leader of this axis,” the newspaper noted.
Underscoring the failures of Israel’s air defense systems, Maariv said the “Arrow” missile defense system, Israel's main line of defense against ballistic missiles, had failed four times in a row to intercept missiles, including three launched from Yemen and one from Lebanon.
Yedioth Ahronoth's Ben-Yishai also warned that the threat posed by maneuvering warheads on Iran's heavy, long-range missiles would become existential for Israel should Iran succeed in developing nuclear warheads for these missiles.
Meanwhile, Israel’s Channel 12 said that in recent months, the Middle East has changed beyond recognition.
The channel said that for the first time in more than half a century, a direct and threat-free air corridor has been opened to Iran through the Middle East. Israel will benefit from this corridor to launch almost daily attacks on the border crossings between Syria and Lebanon, it said.
Channel 12 also reported that according to the Israeli military, the new threat-free corridor will help Israel launch a future attack on Iran's nuclear facilities.
“From Israel's perspective, the fall of the Assad regime and the collapse of the Iranian ring of fire are changing the balance of power in the Middle East,” the report added.