Norwegian Prime Minister Jonas Gahr Støre announced on Saturday that an agreement to release tax funds allocated to the Palestinian Authority, which Israel has withheld, has become "imminent." Norway is playing a mediating role in reaching the agreement.
According to peace accords reached in the 1990s, the Israeli Ministry of Finance collects taxes on behalf of the Palestinians and makes monthly transfers to the Palestinian Authority. However, no amounts have been paid since November following the outbreak of war between Israel and the Palestinian Islamist movement Hamas in October.
On January 21, Israeli officials stated that the cabinet approved a plan to transfer the frozen tax funds designated for Gaza to Norway instead of transferring them to the Palestinian Authority.
Støre told Reuters in an interview, "I would say that the talks have concluded, and we are very close to reaching an agreement," adding that he believes a compromise has been found. Acquiring these revenues is essential for the continued functioning of the Palestinian Authority.
Several Western countries, including the United States, want the Palestinian Authority to play a role in managing Gaza once the war is over. Norway played the role of mediator in the talks between Israel and the Palestine Liberation Organization from 1992 to 1993, which led to the signing of the Oslo Accords. Norway also chairs the international donor group for the Palestinian territories, known as the Ad Hoc Liaison Committee.
Since Israel intensified its attacks on Gaza in its war against Hamas, there have been interests in reviving the Ad Hoc Liaison Committee as a potential diplomatic channel. Støre mentioned that there are consultations to assess the appropriate timing for calling another meeting, but the priority is directed towards delivering humanitarian aid to the region. He added, "We believe it is not in anyone's interest for the Palestinian Authority to fail and go bankrupt. It would be a disaster for the Palestinians and also very bad for Israel's security."
