Arab-Israeli Conflict

Palestinian Authority edging toward collapse, may trigger ‘chaos’ in Judea, Samaria

Officials noted that unemployment is climbing, security forces are going unpaid, and critical government functions are deteriorating.

By Vered Weiss, World Israel News

Senior Shin Bet officials have cautioned Israel’s political leadership that the Palestinian Authority (PA) may be edging toward collapse, a development they warned could ignite unrest in Judea and Samaria, Channel 12 reported Wednesday.

According to the report, the agency raised the alarm during recent closed-door meetings, citing the PA’s deepening financial distress.

Officials noted that unemployment is climbing, security forces are going unpaid, and critical government functions are deteriorating. “These factors could trigger chaos and a flare-up,” the security officials said.

In their assessment, the Shin Bet emphasized that despite tensions, the survival of the PA ultimately serves Israel’s strategic interests by helping maintain relative calm in Judea and Samaria.

They recommended measures to stabilize the PA, including reinstating funds that the Israeli cabinet previously froze. The proposal aligns with the position of much of the international community, but Finance Minister Bezalel Smotrich remains firmly opposed, the report added.

The Shin Bet declined to comment on “matters discussed behind closed doors.”

Smotrich’s resistance has already shaped policy. In June, he ordered the cancellation of a key financial safeguard that underpinned Palestinian banking operations.

His directive instructed Accountant General Yali Rothenberg to revoke the state indemnity granted to Israeli banks conducting transactions with Palestinian financial institutions in Judea, Samaria, and Gaza.

That indemnity shielded Israeli banks from legal liability and was widely regarded as essential for preserving routine monetary exchanges in shekels. Removing it, financial experts warn, could disrupt the Palestinian economy, which relies heavily on its financial linkages with Israel.

Smotrich defended the decision as a response to what he described as a “delegitimization campaign” orchestrated by the PA on the international stage. His office said the PA’s conduct had rendered continued financial cooperation untenable.

As Israeli security officials urge caution, the rift highlights a growing debate within the government: whether preserving the PA’s viability is a necessary safeguard against instability or a concession that undermines Israel’s broader political goals.

Share
Published by
Miriam Metzinger
Tags: Judea and Samaria Palestinian Authority Smotrich

Recent Posts

  • Videos

WATCH: IDF pounds southern Lebanon after Hezbollah drone attack

Israeli fighter jets launched heavy strikes in southern Lebanon after Hezbollah fired two explosive drones…

3 hours ago
  • Jewish Diaspora & Antisemitism

Irish man arrested in France for threatening Jewish couple, supporting Nazi Holocaust

French police arrested an Irish national who was filmed threatening a Jewish couple and lamenting…

3 hours ago
  • World News

State Department urges heightened security for Jews during High Holidays

'We urge your government to deploy law enforcement, counterterrorism or military forces, as appropriate, to…

3 hours ago
  • Videos

WATCH: IDF eliminates 2 Oct. 7 Nukhba terrorists

The IDF eliminated two Hamas Nukhba terrorists who invaded Israel on Oct. 7, including a…

4 hours ago
  • World News

Trump may target UK with tariffs over ban on Israeli settlement trade – report

British Prime Minister Andy Burnham reportedly informed that President Trump could hit the UK with…

4 hours ago
  • Videos

WATCH: Tom Barrack’s deal-first diplomacy collides with Middle East reality

U.S. envoy Tom Barrack’s unconventional, deal-driven diplomacy is increasingly clashing with Israel’s security concerns and…

4 hours ago