Spain to Recognize Palestinian Statehood by July

File photo: Spain's Prime Minister Pedro Sanchez leaves after a press conference at the end of the second and last day of the European Council summit at the EU headquarters in Brussels on March 22, 2024. (Photo by KENZO TRIBOUILLARD / AFP)
File photo: Spain's Prime Minister Pedro Sanchez leaves after a press conference at the end of the second and last day of the European Council summit at the EU headquarters in Brussels on March 22, 2024. (Photo by KENZO TRIBOUILLARD / AFP)
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Spain to Recognize Palestinian Statehood by July

File photo: Spain's Prime Minister Pedro Sanchez leaves after a press conference at the end of the second and last day of the European Council summit at the EU headquarters in Brussels on March 22, 2024. (Photo by KENZO TRIBOUILLARD / AFP)
File photo: Spain's Prime Minister Pedro Sanchez leaves after a press conference at the end of the second and last day of the European Council summit at the EU headquarters in Brussels on March 22, 2024. (Photo by KENZO TRIBOUILLARD / AFP)

Spain will recognize Palestinian statehood by July, Prime Minister Pedro Sanchez told journalists during a Middle East tour, according to several reports published on Tuesday in Spanish media.
State news agency EFE and newspapers El Pais and La Vanguardia cited Sanchez as making the informal remarks to the traveling press corps late on Monday in the Jordanian capital, Amman, on the first day of visits to Jordan, Qatar and Saudi Arabia.
According to the reports, Sanchez said he expected events to unfold in the conflict ahead of the European Parliament elections in early June and highlighted ongoing debates at the United Nations, Reuters reported.
He expected Spain to extend recognition to the Palestinians by July, he said, adding that he believed there would soon be a "critical mass" within the European Union to push several member states to adopt the same position, according to EFE.
At a European Council meeting on March 22, Sanchez said he had agreed with the leaders of Ireland, Malta and Slovenia to "take the first steps" towards recognizing statehood declared by Palestinians in the Israeli-occupied West Bank and Gaza Strip.
At the time, he said he expected the recognition to happen during the current four-year legislature that began last year.
In response, Israel told the four countries that their plan constituted a "prize for terrorism" that would reduce the chances of a negotiated resolution to the Gaza conflict.
Arab states and the EU had agreed at a meeting in Spain in November that a two-state solution was the answer to the Palestinian-Israeli conflict.
Since 1988, 139 out of 193 UN member states have recognized Palestinian statehood.



Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
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Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)

Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA's nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totaling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday's cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels, Reuters reported.

"The procedure was implemented after several anti-Israeli actions and included Norway's unilateral recognition of a Palestinian state," Smotrich told cabinet ministers.

"The PA's debt to IEC resulted in high loans and interest rates, as well as damage to IEC's credit, which were ultimately rolled over to the citizens of Israel."

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account "a punitive measure linked to the government’s financial support for Gaza.”

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

"This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza," the ministry said.

It added it was working with international partners to secure the release of these funds as soon as possible.