Punishment: PA Prime Minister Salaam Fayyad says he can't pay December salaries

A report in YNet tonight tells us that Palestinian Authority [PA] Salaam Fayyad said today that he is unable to pay December salaries in the coming week because of Israel’s withholding of the VAT + Customs taxes it collects for the PA under the 1994 Paris Protocol [part of the Oslo Accords].

YNet doesn’t say exactly where Fayyad made these remarks, but it reported that Fayyad said that “suspension of the tax transfers ‘has both an immediate impact on the lives of all employees and their dependents, some 1 million people … (and) has a devastating indirect impact throughout the whole economy’.”

The same YNet report says that an Israeli official [unnamed] “said Sunday that Israel suspended the transfers temporarily to express its concern over the conduct of Abbas and his government, mainly his quest for recognition of Palestine”.

[n.b. – This refers mainly to the “UN bid” for full membership in the United Nations; Israel has already withheld one month of tax transfers in November because of the 31 October vote in UNESCO to admit the State of Palestine as a full member of the Paris-based agency…]

The YNet article adds that “The Israeli official said Israeli might make decision to withhold the money permanent if Abbas sets up a unity government with Hamas, the Islamic terrorist group that controls Gaza. The official spoke on condition of anonymity because he was not authorized to discuss the issue with reporters”.
This YNet article can be read in full here.