Israeli move to cut cooperation with Palestinian banks could devastate economy, EU warns
The EU has warned that Israeli Finance Minister Bezalel Smotrich's order to cancel a waiver on cooperation between Israeli and Palestinian banks could 'devastate' the Palestinian economy and precipitate the collapse of the Palestinian Authority (PA).
'The European Union is deeply concerned by the instruction by Israel's finance minister Smotrich to cancel the waiver on cooperation with Palestinian banks, which could cut them off from the Israeli financial system, devastate an already crippled Palestinian economy, and may lead to the collapse of the Palestinian Authority,' EU spokesman Anouar El Anouni said.
He added that the EU was urging Israel 'to revert this decision immediately and to refrain from any action that could lead to the collapse of the Palestinian Authority'.
Cancelling the waiver would require approval by Israel's security cabinet. No date for a vote has been set and it was not clear whether it would pass.
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