Following the Israeli decision to withhold some of funds from the tax revenues Israel regularly transfers to the Palestinian Authority under the Oslo Accords, the Palestinian Authority announced yesterday that it would no longer accept any tax revenues, unless transferred in full.
We have been in touch with both parties and expressed our clear expectation that economic and fiscal agreements between Israel and the Palestinian Authority should continue to be fully implemented, including Israel's obligations under the Paris Protocol. Meanwhile, we call on the Palestinian Authority to continue accepting the tax transfers on a provisional basis, which does not constitute a legal or political endorsement of Israeli deductions. A functioning Palestinian Authority that delivers health, education and security to millions of Palestinians is in the interest of both Palestinians and Israelis. We expect both parties to avoid any steps that could risk undermining stability on the ground and the viability of a future Palestinian state.
The European Union will continue to raise its concerns regarding the nature of the Palestinian system of payments to detainees and families of so-called "martyrs". We expect genuine commitment from both sides towards a peaceful and negotiated two-state solution, including the need to oppose incitement.