Israel withholds tax revenues from Palestinian Authority

[JDPriestly]

11. And why is Israel keeping this money?

Israeli Finance Minister Yuval Steinitz said he would use the money to repay part of an outstanding Palestinian debt -- estimated to be about $180 million -- to Israel’s electricity company for power supplied to parts of the West Bank.

The action was expected since Israel previously halted the transfer of monthly tax payments in response to a similar U.N. bid by the Palestinians last year. The money is collected on behalf of the Palestinian Authority from West Bank importers using Israeli ports.

. . .
The Israeli move did not dampen the celebrations Sunday in Ramallah, where thousands of people gave a hero's welcome to Palestinian Authority President Mahmoud Abbas upon his return from New York. . . .

"One day, a young Palestinian will raise the Palestinian flag over Jerusalem, the eternal capital of the state of Palestine," Abbas told the jubilant crowds, echoing a phrase the Israeli leaders often use to describe Jerusalem. "Palestine has succeeded in something historic at the United Nations. The recognition of Palestine as a country changes everything. It highlights new realities."

http://www.latimes.com/news/world/worldnow/la-fg-wn-israel-palestinians-taxes-20121202,0,1179646.story

There are always two sides . . . .

Maybe the Palestinians many friends in the UN will pay Palestine's electricity bills in the future.

Abbas's threat about Jerusalem does not sound peaceful to me. The parties need to negotiate territorial disputes as do all other neighbors.