West Bank Economy in Tatters as Gaza War Rages

Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP
Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP
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West Bank Economy in Tatters as Gaza War Rages

Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP
Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP

In the occupied West Bank, Hafeth Ghazawneh waits in quiet frustration for customers to visit his falafel stall, which has been deserted since the October 7 Hamas attacks in Israel.

His breakfast and lunch offerings were popular with craftsmen from workshops near Al-Bireh, the twin city of Ramallah, before the Israel-Hamas war broke out.

"Now they're bringing their meals from home because the situation is so difficult," Ghazawneh tells AFP, fearing he will have to shut up shop if the war in the Gaza Strip continues.

Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530).

His worsening situation reflects the current status of the West Bank economy, which is in tatters as the war in Gaza rages.

The conflict erupted after Hamas militants attacked southern Israel on October 7. Israel's blistering retaliation has killed at least 24,448 people, around 70 percent of them women, children and adolescents, according to the Hamas government's health ministry in Gaza.

The World Bank has estimated the West Bank's GDP could fall by six percent this year, while the International Labor Organization said 32 percent of jobs have already been lost.

The unemployment rate has skyrocketed to 30 percent, up from 14 percent before the war, according to Taher al-Labadi, a researcher at the French Institute for the Near East (Ifpo).

Israel has also withdrawn 130,000 work permits from Palestinians in the West Bank, leaving many with no source of income.

The three million Palestinians living in the West Bank, which Israel has occupied since 1967, cannot travel to Israel without a permit.

Bishara Jubran, manager of a household products and cosmetics factory in Ramallah, considers himself lucky because he has been able to keep all 70 of his employees on the books.

But his business has stopped producing soaps made from Dead Sea ingredients which he used to sell to hotels.

As the war rages and visitors stay away, he estimates his losses at $200,000 last year.

He keeps his factory afloat by selling washing powder and other household products on the Palestinian market.

But none of his goods are allowed into Gaza, a key market that used to make up 20 percent of his sales.

In the West Bank, transport costs have increased because of a growing number of checkpoints and the sealing off of certain towns by the Israeli army, Bishara says.

"Many times the truck leaves and it takes them like four or five hours to reach... the north in Nablus to find out that he cannot enter the city. So he just comes back," he says.

Now he makes a delivery every two or three days, down from two a day before the war.

Such factors have led to a contraction of the economy, which is now operating at 50 percent of its capacity, according to Abdo Idris, president of the Palestinian Chamber of Commerce.

The Palestinian economy was already "asphyxiated" and highly dependent on Israel before the war, researcher Labadi says.

Under the Oslo Accords of the 1990s, it was agreed that a political status quo would be maintained and Palestinians were promised economic development.

But this status quo was undermined by Israel's "colonization of the West Bank", Labadi says, lamenting that Palestinian economic development "did not take place".

As a result, in times of crisis, the increasingly fragile Palestinian economy finds itself "deprived of all its resources and with a very limited capacity for resilience", he says.

Israel controls the borders of the West Bank and collects taxes on Palestinian products, which it must then pass on to the Palestinian Authority.

But since October 7, those taxes have not been paid.

As of December, Israel had not paid two billion shekels in taxes imposed on Palestinian products, according to the Palestinian finance ministry.

The Palestinian Authority has struggled to pay public servants since the taxes were withheld.

Civil servants told AFP their salaries for December have still not been paid.

In October, they received 50 percent of their wages, and 65 percent in November.

"The fear of the unknown is killing us," Jubran says. "We don't know if we'll be able to go to work tomorrow."



The Election of a Trump Ally in Poland Could Alter EU and Ukraine Policies 

Karol Nawrocki, candidate for the 2025 Polish presidential election supported by Poland's right-wing Law and Justice (PiS) party, flashes the victory sign in front of supporters as exit polls were announced on tv during their election night event at the Mala Warszawa Theater in Warsaw, Poland, during the second round of the presidential elections on June 1, 2025. (AFP)
Karol Nawrocki, candidate for the 2025 Polish presidential election supported by Poland's right-wing Law and Justice (PiS) party, flashes the victory sign in front of supporters as exit polls were announced on tv during their election night event at the Mala Warszawa Theater in Warsaw, Poland, during the second round of the presidential elections on June 1, 2025. (AFP)
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The Election of a Trump Ally in Poland Could Alter EU and Ukraine Policies 

Karol Nawrocki, candidate for the 2025 Polish presidential election supported by Poland's right-wing Law and Justice (PiS) party, flashes the victory sign in front of supporters as exit polls were announced on tv during their election night event at the Mala Warszawa Theater in Warsaw, Poland, during the second round of the presidential elections on June 1, 2025. (AFP)
Karol Nawrocki, candidate for the 2025 Polish presidential election supported by Poland's right-wing Law and Justice (PiS) party, flashes the victory sign in front of supporters as exit polls were announced on tv during their election night event at the Mala Warszawa Theater in Warsaw, Poland, during the second round of the presidential elections on June 1, 2025. (AFP)

Poland has elected Karol Nawrocki, a conservative historian and staunch nationalist, as its next president in a closely watched vote that signals a resurgence of right-wing populism in the heart of Europe.

Nawrocki, who is set to take office on Aug. 6, is expected to shape the country’s domestic and foreign policy in ways that could strain ties with Brussels while aligning the Central European nation of nearly 38 million people more closely with the administration of President Donald Trump in the United States.

Here are some key takeaways:

Conservative populism on the rise Nawrocki’s victory underscores the enduring appeal of nationalist rhetoric among about half of the country along the eastern flank of NATO and the European Union, and its deep social divisions.

The 42-year-old historian, who had no previous political experience, built his campaign on patriotic themes, traditional Catholic values, and a vow to defend Poland's sovereignty against the EU and larger European nations like Germany.

His win also reflects the appeal of right-wing nationalism across Europe, where concerns about migration, national sovereignty, and cultural identity have led to surging support for parties on the right — even the far right in recent times.

Far-right candidates did very well in Poland's first round of voting two weeks earlier, underlining the appeal of the nationalist and conservative views. Nawrocki picked up many of those votes.

As his supporters celebrate his win, those who voted for the defeated liberal candidate, Warsaw Mayor Rafał Trzaskowski, worry that it will hasten the erosion of liberal democratic norms.

Prime Minister Donald Tusk's troubles Nawrocki’s presidency presents a direct challenge to Prime Minister Donald Tusk, who returned to power in late 2023 pledging to mend relations with the EU and restore judicial independence which Brussels said was eroded by Law and Justice, the party that backed Nawrocki.

But Tusk's coalition, a fragile alliance of centrists, leftists, and agrarian conservatives, has struggled to push through key promises.

Nawrocki will have the power to veto legislation, complicating Tusk’s agenda and potentially triggering political gridlock.

Ties with the Trump administration Nawrocki's election could signal a stronger relationship between Poland and the Trump administration.

Poland and the US are close allies, and there are 10,000 US troops stationed in Poland, but Tusk and his partners in the past have been critical of Trump. Nawrocki, however, has a worldview closely aligned with Trump and his Make America Great Again ethos.

Trump welcomed Nawrocki to the White House a month ago and his administration made clear in other ways that he was its preferred candidate.

A shifting focus on Ukraine While Nawrocki has voiced support for Ukraine’s defense against Russian aggression, he does not back Ukrainian membership in NATO and has questioned the long-term costs of aid, particularly support for refugees.

His rhetoric has at times echoed that of Trump, for instance by accusing Ukrainian President Volodymyr Zelenskyy of what he said was insufficient gratitude for Poland’s assistance. With growing public fatigue over helping Ukrainian refugees, Nawrocki’s approach could shift Poland’s posture from strong ally to conditional partner if the war drags on much longer.

Ties with the EU The election result is a setback for the EU, which had welcomed Tusk’s return in 2023 as a signal of renewed pro-European engagement.

Nawrocki and the Law and Justice party have criticized what nationalists view as EU overreach into Poland's national affairs, especially regarding judicial reforms and migration policy.

While the president does not control day-to-day diplomacy, Nawrocki’s symbolic and veto powers could frustrate Brussels’ efforts to bring Poland back into alignment with bloc standards, particularly on rule-of-law issues.

Market jitters Though an EU member, Poland has its own currency, the zloty, which weakened slightly on Monday morning, reflecting investor concerns over potential policy instability and renewed tensions with EU institutions.

Billions of euros in EU funding has been linked to judicial reforms which Tusk's government will now be unlikely to enact without presidential cooperation.