RAMALLAH, West Bank - The Palestinian Authority said on Monday it had not been able to pay public sector salaries for the first time since 2007 because of Israel's decision to halt the transfer of tax funds.
| They'll be starving in the streets. Or shooting at each other. Or robbing banks. |
| Who needs a salary when you have Dignity(tm) and Unity(tm)??? |
Prime Minister Salam Fayyad said Israel's decision, taken in protest at a Palestinian unity deal involving the Islamist group Hamas -- had put the Ramallah-based government in an impossible financial position.
Fayyad said the Palestinian Authority (PA) had paid salaries to its 150,000 employees on the 5th day of every month since mid-2007. "We are now on the 9th and we have not been able to meet this obligation," he said.
| They have 150K employees in a land of about 4 million people. |
The Israeli government headed by Prime Minister Benjamin Netanyahu decided on May 1 to halt the transfers of Palestinian taxes which make up 70 percent of PA revenues, citing fears that the money would go to Hamas, a militant group hostile to Israel.
| Hmmm, you are almost completely dependent on one source of revenue, yet your entire existence is based on biting the hand that feeds you. Maybe there is a need to work on trying to figure out the logic of this situation, and making some adjustments to pre-existing habits and assumptions. |
| That would require them to think things through. Better to have Dire Revenge™. |
"The situation was difficult before Israel halted the transfer of money. Now, with Israel halting the transfers, it is impossible," Fayyad said.
He added the PA would not be able to pay the monthly wage bill, which totals almost $170 million, until Israel handed over the tax money or foreign governments stepped in to fill the financial gap.
| Or the 150K workers actually do something of value other than beat up on Dogmushes... |
The European Commission announced on Friday it would provide an additional 85 million euros ($122 million) in aid in 2011, with 45 million euros of this earmarked for salaries for key workers. It was not clear when these funds would arrive.
| Did the Commissioners consult with the paying governments before making that grand promise? When Britain is cutting off the U.N, it isn't likely they're going to give extra money to the EU to play with, while Germany and France have Greece and Ireland to finance, among others. |
The PA, which is heavily dependent on the financial support of donors including the United States and the European Union, has called for international intervention to persuade Israel to reverse the decision.
| "Death to Israel!" oh and, um, please give us our money... |
Fayyad said there had been no communication with the Israeli finance ministry since the cancellation of a monthly meeting held to coordinate the transfer of the revenues, mostly collected on goods imported via Israel to PA-controlled areas.
"This matter has obstructed the capacities of the authority and has limited its ability to perform its duties, especially the salaries," Fayyad told journalists in Ramallah.
The salaries paid by the PA include those of around 70,000 employees in the Gaza Strip, who continued to receive their wages even after Hamas seized control of the territory in 2007.
| Brilliant. I can't think of another place on earth -- well, okay, General Motors -- that is this clueless... |
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