The Two Countries That Just Created a New Lifeline for the Palestinian Authority

Spain's Foreign Minister José Manuel Albares has announced that his country will partner with Norway to establish a fund aimed at compensating the Palestinian Authority (PA) for tax revenues withheld by Israel. The move comes as Israel continues to freeze the transfers, which are a critical source of income for the PA.

Speaking during a visit to Egypt, Albares stated that Spain will work with Norway "to put a fund on the table" to address the financial shortfall. He was also critical of Israel's military actions in Gaza, referring to them as a "veritable massacre" and claiming that Israel is "trying to annihilate the idea and possibility of a Palestinian state."

This is not the first time Norway has stepped in to facilitate these funds. In February 2024, Norway transferred tax revenues to the PA after they had been frozen for months due to a dispute with Israel. The arrangement, in which Israel collects taxes and customs on behalf of the PA, is a long-standing one. These funds are used to pay for public services in both Judea and Samaria and Gaza.

However, since the October 7 attack by Hamas, Israel has intermittently refused to make these transfers. Israel's Finance Minister Bezalel Smotrich has justified the withholding of funds, arguing that they could be used to support terror activities. The new initiative by Spain and Norway aims to circumvent this financial blockade and ensure the PA can continue its operations.