Palestinian Authority Under Threat in Face of Major Fiscal Crisis, UN Report Warns

Report issued by the UN Special Coordination for the Middle East Process' office raises alarm over 'unprecedented financial, security and political challenges'

Palestinian President Mahmoud Abbas attends the extraordinary session of the Arab League foreign ministers to discuss the situation in the Palestinian territories at the Arab League headquarters in Cairo, Egypt, April 21, 2019.
AP Photo/Amr Nabil

The viability of the Palestinian Authority is under threat as it faces unprecedented challenges, a report released Thursday by the office of the United Nations Special Coordination for the Middle East Process said.

"A major fiscal crisis, coupled with growing humanitarian needs and the lack of a political prospect for a negotiated solution, threatens the stability of the West Bank and the very survival of the Palestinian statebuilding effort," UN Mideast envoy Nickolay Mladenov's office said in a press release announcing the report's publication.

The report, issued ahead of the bi-annual meeting of the Ad Hoc Liaison Committee in Brussels on April 30, warned of "the unprecedented financial, security and political challenges" faced by the Palestinian government, emphasizing in particular the financial crisis resulting from Israel's decision to deduct money that Palestinians transfer to the families of people killed, injured or imprisoned for attacks on Israel from their monthly tax revenue, coupled with the PA's refusal to accept the partial revenue.

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According to the report, these decisions have caused the Palestinian government to lose some 65 percent of its revenue and forced it to take extreme austerity measures.