Independent News carried a story this week by journalist Stephen Castle on the imminent economic collapse of the Palestinian Authority. According to Castle, the European Union "has delivered a sharp warning that the civilian administration of the Palestine territories is close to collapse because of the economic effects of Israel's blockade." Castle says that EU authorities in Brussels have been compelled to provide emergency loans to the run the ongoing costs of the PA "which is normally paid for by customs and tax revenues collected by the Israelis." Turning a virtual blind eye to the context of the economic crisis - the Arafat-initiated Rosh Hashanah Arab Assault - Castle notes that "the growing European alarm at Israeli policy was voiced when a special envoy of the Israeli prime minister-elect, Ariel Sharon, visited Brussels on Friday." The EU, says Castle, is convinced that Israel's decision not to turn over tax revenues to Arafat is self-defeating, "because economic impoverishment is likely to encourage Palestinians to embrace more radical politics." Only at the end of the article does Castle give time to the Israeli position, in which he cites an Israeli diplomat as saying: "There is no question about it. The closure and the whole situation is harming the Palestinian economy. But if we have to choose between their economy and our lives, our position is clear."
The Khaleej Times printed a similar story this week that claimed that "three-quarters of Palestinians say their incomes have declined since the anti-Israeli uprising broke out in September and that they have suffered psychological problems due to the hardship."
Arutz Sheva notes the 1999 London Times story on the PLO's massive misappropriation of European-donated funds as well as the recent decision of Arab states not to channel money directly to the PA. The Arab hesitance reportedly stems from a fear that such money would be subject to continued financial abuses by PLO chief Arafat and his colleagues.
The Khaleej Times printed a similar story this week that claimed that "three-quarters of Palestinians say their incomes have declined since the anti-Israeli uprising broke out in September and that they have suffered psychological problems due to the hardship."
Arutz Sheva notes the 1999 London Times story on the PLO's massive misappropriation of European-donated funds as well as the recent decision of Arab states not to channel money directly to the PA. The Arab hesitance reportedly stems from a fear that such money would be subject to continued financial abuses by PLO chief Arafat and his colleagues.