Palestinian Leader Appoints Longtime Adviser as Prime Minister in the Face of Calls for Reform

File photo: Palestinian leader Mahmoud Abbas listens as Turkish President Recep Tayyip Erdogan (not pictured) speaks during a meeting in Ankara, on March 5, 2024. (Photo by Adem ALTAN / AFP)
File photo: Palestinian leader Mahmoud Abbas listens as Turkish President Recep Tayyip Erdogan (not pictured) speaks during a meeting in Ankara, on March 5, 2024. (Photo by Adem ALTAN / AFP)
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Palestinian Leader Appoints Longtime Adviser as Prime Minister in the Face of Calls for Reform

File photo: Palestinian leader Mahmoud Abbas listens as Turkish President Recep Tayyip Erdogan (not pictured) speaks during a meeting in Ankara, on March 5, 2024. (Photo by Adem ALTAN / AFP)
File photo: Palestinian leader Mahmoud Abbas listens as Turkish President Recep Tayyip Erdogan (not pictured) speaks during a meeting in Ankara, on March 5, 2024. (Photo by Adem ALTAN / AFP)

Palestinian President Mahmoud Abbas has appointed his longtime economic adviser to be the next prime minister in the face of US pressure to reform the Palestinian Authority as part of Washington's postwar vision for Gaza.
Mohammad Mustafa, a US-educated economist and political independent, will head a technocratic government in the Israeli-occupied West Bank that could potentially administer Gaza ahead of eventual statehood. But those plans face major obstacles, including strong opposition from Israeli Prime Minister Benjamin Netanyahu, and the Israel-Hamas war that is still grinding on with no end in sight.
It’s unclear whether the appointment of a new Cabinet led by a close Abbas ally would be sufficient to meet US demands for reform, as the 88-year-old president would remain in overall control, The Associated Press said.
“The change that the United States of America and the countries of the region want is not necessarily the change that the Palestinian citizen wants,” said Hani al-Masri, a Palestinian political analyst. “People want a real change in politics, not a change in names ... They want elections.”
He said Mustafa is “a respected and educated man” but will struggle to meet public demands to improve conditions in the occupied West Bank, where Israeli restrictions imposed since the start of the war have caused an economic crisis.
In a statement announcing the appointment, Abbas asked Mustafa to put together plans to re-unify the administration in the West Bank and Gaza, lead reforms in the government, security services and economy and fight corruption.
Washington welcomed his appointment but urged that Mostafa quickly form a Cabinet to implement changes.
"The United States will be looking for this new government to deliver on policies and implementation of credible and far-reaching reforms. A reformed Palestinian Authority is essential to delivering results for the Palestinian people and establishing the conditions for stability in both the West Bank and Gaza," National Security Council spokesperson Adrienne Watson said.
Mustafa was born in the West Bank town of Tulkarem in 1954 and earned a doctorate in business administration and economics from George Washington University. He has held senior positions at the World Bank and previously served as deputy prime minister and economy minister. He is currently the chairman of the Palestine Investment Fund.
The previous prime minister, Mohammad Shtayyeh, resigned along with his government last month, saying different arrangements were needed because of the “new reality in the Gaza Strip.”
The Palestinian Authority was established in the 1990s through interim peace agreements and was envisioned as a stepping-stone to eventual statehood.
But the peace talks repeatedly collapsed, most recently with Netanyahu’s return to power in 2009. Hamas seized power in Gaza from forces loyal to Abbas in 2007, confining his limited authority to major population centers that account for around 40% of the Israeli-occupied West Bank.
Abbas is deeply unpopular among Palestinians, many of whom view the PA as little more than a subcontractor of the occupation because it cooperates with Israel on security matters. His mandate ended in 2009 but he has refused to hold elections, blaming Israeli restrictions. Hamas won a landslide victory in the last parliamentary elections, in 2006. Although it is considered a terrorist group by Israel and Western countries, Hamas would likely perform well in any free and fair vote.
Abbas, unlike his Hamas rivals, recognizes Israel, has renounced armed struggle and is committed to a negotiated solution that would create an independent Palestinian state alongside Israel. That goal is shared by the international community.
Israel has long criticized the PA over payments it makes to the families of Palestinians who have been killed or imprisoned by Israel. The PA defends such payments as a form of social welfare for families harmed by the decades-old conflict.
The dispute has led Israel to suspend some of the taxes and customs duties it collects on behalf of the PA, contributing to years of budget shortfalls. The PA pays the salaries of tens of thousands of teachers, health workers and other civil servants.
The United States has called for a reformed PA to expand its writ to postwar Gaza ahead of the eventual creation of a Palestinian state in both territories. Netanyahu has ruled out any role for the PA in Gaza, and his government is opposed to Palestinian statehood.
Israel captured the West Bank, Gaza and east Jerusalem in the 1967 Mideast war. The Palestinians want all three territories to form their future state.
Israel annexed east Jerusalem in a move not recognized internationally and considers the entire city — including major holy sites sacred to Jews, Christians and Muslims — to be its undivided capital. Israel has built scores of settlements across the West Bank, where over 500,000 Jewish settlers live in close proximity to some 3 million Palestinians.
Israel withdrew soldiers and settlers from Gaza in 2005, but along with Egypt imposed a blockade on the territory when Hamas seized power two years later.
Netanyahu has vowed to dismantle Hamas and maintain open-ended security control over Gaza in the wake of Hamas’ Oct. 7 attack, in which the group stormed into southern Israel, killing some 1,200 people and taking another 250 hostage. Israel’s subsequent invasion of Gaza has killed more than 31,000 Palestinians, according to Gaza health officials.
The Palestinian Authority has said it will not return to Gaza on the back of an Israeli tank, and that it would only assume control of the territory as part of a comprehensive solution to the conflict that includes statehood.



Israeli Defense Minister: We Will Never Withdraw our Forces from Gaza

Israeli Defense Minister Israel Katz. (dpa)
Israeli Defense Minister Israel Katz. (dpa)
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Israeli Defense Minister: We Will Never Withdraw our Forces from Gaza

Israeli Defense Minister Israel Katz. (dpa)
Israeli Defense Minister Israel Katz. (dpa)

Israeli Defense Minister Israel Katz said on Tuesday that Israel “will never withdraw from the Gaza Strip,” announcing that new settlement outposts will be established in the northern part of the enclave “when the appropriate time comes.”

Israeli media reported that Katz made the remarks during a ceremony held in Beit El, stating: “We will do this in the right way and at the right time. There will be those who protest, but we are ministers.”


A Shaky Start for Lebanon’s Financial Gap Bill

Depositors hold protest banners against the draft deposit recovery law during popular demonstrations on the road to the Presidential Palace (Asharq Al-Awsat). 
Depositors hold protest banners against the draft deposit recovery law during popular demonstrations on the road to the Presidential Palace (Asharq Al-Awsat). 
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A Shaky Start for Lebanon’s Financial Gap Bill

Depositors hold protest banners against the draft deposit recovery law during popular demonstrations on the road to the Presidential Palace (Asharq Al-Awsat). 
Depositors hold protest banners against the draft deposit recovery law during popular demonstrations on the road to the Presidential Palace (Asharq Al-Awsat). 

A widening wave of objections in Lebanon to the draft “financial gap” bill has exposed the hurdles facing its passage in parliament.

Prepared by a ministerial and legal committee chaired by Prime Minister Nawaf Salam, the bill has drawn resistance from influential political and sectoral actors, bolstering the opposition voiced by depositors’ associations and the banking lobby.

Conflicting ministerial positions ahead of Monday’s special cabinet session to review the final draft underscore the sharp disputes likely to intensify once the bill is formally sent to parliament, a senior financial official told Asharq Al-Awsat.

With parliamentary elections due next spring, candidates are wary of confronting voters or powerful interest groups.

According to the government’s forthcoming brief, the bill marks the end of years of disorder and the start of a clear path to restore rights, protect social stability, and rebuild confidence in the financial system after six years of paralysis, silent erosion of deposits, and crisis mismanagement.

It is framed not as a narrow technical fix, but as a strategic shift, from denying losses and letting them fall haphazardly, to acknowledging and organizing them within an enforceable legal framework.

The government argues the plan would protect about 85% of depositors by enabling access to a guaranteed portion of savings, up to $100,000 over four years, while preserving the nominal value of all deposits via central bank–guaranteed bonds maturing in 10, 15, and 20 years.

Banks, however, have openly declared their “fundamental reservations and strong objection” to the bill on financial regularization and deposit treatment.

Professional associations and unions have joined depositors’ groups in opposing proposals they say would load the bulk of losses onto depositors, either through direct haircuts or by stretching repayment over one to two decades.

The Beirut Order of Engineers added its voice, warning that the near-final draft manages collapse rather than delivers reform, distributing losses unfairly at the expense of depositors and productive sectors, and failing to explicitly protect union funds.

Legal objections have also surfaced over provisions with retroactive effect, taxes, levies, and accounting adjustments applied to transfers made after the crisis erupted in autumn 2019, as well as to past deposit returns.

Banks say such measures constitute an unjustified infringement of rights and lack sound legal and financial grounding or precedent.

The financial official noted that these retroactive elements could be challenged before the State Council, as they contradict the principle that laws apply only after promulgation. Most transactions, he added, were conducted under then-valid laws and central bank approvals.

By contrast, previous governments compelled the central bank to spend more than $11 billion on poorly controlled subsidies, much of which was smuggled abroad, notably to Syrian markets.

Banks insist that any credible solution must begin with a precise, transparent assessment of the financial gap at the Central Bank, based on audited, unified accounts and realistic financial modeling.

They argue that the plan effectively wipes out banks’ capital and - under loss-sharing rules set by Law 23/2025 - ultimately hits depositors, while the state avoids settling its debts to the central bank or covering its balance-sheet shortfall.

 

 

 


Gazans Fear Renewed Displacement after Israeli Strikes

This overview shows a destroyed mosque and other buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)
This overview shows a destroyed mosque and other buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)
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Gazans Fear Renewed Displacement after Israeli Strikes

This overview shows a destroyed mosque and other buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)
This overview shows a destroyed mosque and other buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)

When her children, trembling with fear, ask where the family can go to escape Israel's continued bombardment in southern Gaza's Khan Yunis area, Umm Ahmed has no answer.

In her small, devastated village near Khan Yunis city, recent Israeli drone and artillery strikes shattered the tenuous sense of peace delivered by a ceasefire that has largely held since October 10, AFP said.

Residents say the strikes have targeted neighborhoods east of the so-called Yellow Line -- a demarcation established under the truce between Israel and Hamas.

The Israeli military says its troops are deployed in the area in accordance with the ceasefire framework, accusing Hamas militants of "crossing the Yellow Line and carrying out terrorist activities".

More than two years after Hamas's October 7 attack on Israel sparked a devastating war, tens of thousands of Gazans still live in tents or damaged homes in these areas, where the Israeli army maintains control and operates checkpoints.

Now, many fear being forced from their homes, compelled to move west of the Yellow Line.

"We don't sleep at night because of fear. The bombardments in the east are relentless," said Umm Ahmed, 40.

"My children tremble at every explosion and ask me, 'Where can we go?' And I have no answer."

Her home in Bani Suheila has been completely destroyed, yet the family has stayed, pitching a tent beside the ruins.

"Staying close to our destroyed home is easier than facing the unknown," Umm Ahmed said.

Crossing the Yellow Line to Al-Mawasi, west of Khan Yunis, is not an option for them.

There, makeshift camps stretch as far as the eye can see, housing tens of thousands of Palestinians who fled the fighting.

"There is no place left for anyone there, and not enough food or water," Umm Ahmed said, as Gaza remains trapped in a catastrophic humanitarian crisis.

- 'We will not leave' -

The Israeli military blames continued threats from the Hamas group for its actions in the area.

The Israeli military said in a statement to AFP that the army’s “current operations in Gaza, and their deployment in the Yellow Line area in particular, are carried out to address direct threats from terrorist organizations in Gaza.”

The war in Gaza began with Hamas's attack on Israel on October 7, 2023 that resulted in the deaths of 1,221 people, mostly civilians, according to an AFP tally based on official Israeli figures.

Since the war began, more than 70,000 people have been killed in Gaza, according to the Hamas-run territory's health ministry.

The vast majority of Gaza's more than two million residents were displaced during the war, many multiple times.

A fragile ceasefire has been in place since October 10, though both sides regularly accuse each other of violations.

Under the truce, Israeli forces withdrew to positions east of the Yellow Line.

Earlier this month, Israeli army chief Lieutenant General Eyal Zamir described the Yellow Line as the "new border line" with Israel.

"The Yellow Line is a new border line -- serving as a forward defensive line for our communities and a line of operational activity," he said to reserve soldiers in Gaza.

For Palestinian officials, the line is seen as a tool for permanent displacement.

"The objective is to frighten residents, expel them from their areas, and force them west," said Alaa al-Batta, mayor of Khan Yunis, denouncing the bombardments as "violations of the ceasefire agreement".

Mahmud Baraka, 45, from Khuzaa, east of Khan Yunis, described constant artillery fire and home demolitions in the area.

"It feels like we are still living in a war zone," he said.

"Explosions happen as if they are right next to us. The objective of the occupation is clear: to intimidate us and drive us out, so the region is emptied."

For now, residents feel trapped between bombardment and displacement, uncertain how long they can endure.

Despite the danger, Abdel Hamid, 70, refuses to leave his home located north of Khan Yunis, where he lives with his five children.

"We will not leave... this is our land," he said.

"Moving would not be a solution, but yet another tragedy."