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      Archive: 6/18/2007
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        6/18/2007, Tammuz 2, 5767

      Livni: Israel May Free Up Tax Moneys


      Foreign Minister Tzipi Livni said that Israel would consider unfreezing tax money that it has collected on behalf of the Palestinian Authority, but which it has not paid since Hamas won PA elections last year. Her comments came during a meeting with Foreign Ministers from the European Union’s 27 member states, in which the EU said it would start making payments to the PA again after Chairman Mahmoud Abbas dissolved the unity government with Hamas. Israel is withholding more than $700 million in revenues from the PA. Livni discussed this as part of a general plan to create distance between "moderate" and "extreme" elements within the PA.

      The EU’s main concern with the funds it contributes is how to use them to aid the crisis in Gaza without bolstering Hamas and allowing the funds to be used for terrorism. The PA still maintains control in Judea and Samaria, leaving the EU unconcerned about the buildup of terrorism.