Israel has been refusing to hand over tax revenues to the Palestinian Authority since the national reconciliation accord was signed, with Mark Ragev saying Israel couldn't "transfer the money to a terrorist organisation". The EU has stepped in to provide funds "for the most vulnerable" but civil servants, for example, have still not been paid.
Israel is under pressure to release tax revenues belonging to the Palestinian Authority (PA) which it has blocked in response to the reconciliation agreement between Fatah and Hamas.
The UN secretary general, Ban Ki-moon, and an umbrella group of countries that make donations to the PA have urged the Israeli government to hand over a sum of around 300m shekels (£53.1m). The income is used to pay the salaries of PA employees and to provide services.
The EU announced an extra €85m (£74.3m) in aid to the Palestinians after a request from the prime minister, Salam Fayyad, to cover salaries and welfare payments. more
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