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Spain vows to help compensate PA for funds withheld by 'Israel'

  • By Al Mayadeen English
  • Source: News websites
  • 17 Sep 2025 18:38
  • 1 Shares
2 Min Read

The Spanish FM says his country will work with Norway to create a fund compensating the Palestinian Authority for tax revenues withheld by "Israel".

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  • Spain to help compensate PA for funds withheld by 'Israel'
    Spanish Foreign Minister Jose Manuel Albares listens as he meets with US Secretary of State Marco Rubio in the Treaty Room of the State Department in Washington, DC, on May 22, 2025 (AFP)

Madrid will work with Norway to create a fund aimed at compensating the Palestinian Authority (PA) for tax revenues withheld by "Israel", Spain’s Foreign Minister Jose Manuel Albares announced Wednesday.

“Israel is trying to annihilate the idea and possibility of a Palestinian state with bombs in Gaza in a veritable massacre,” Albares said during his visit to Egypt.

Cooperation with Norway

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Albares said Spain and Norway would coordinate to “put a fund on the table” to support the PA, which is in control of parts of the occupied West Bank and helps finance public services in Gaza.

In February 2024, Norway had already stepped in to transfer frozen tax funds to the PA amid "Israel's" intransigence and refusal to release the funds.

Background on withheld funds

Under existing arrangements, "Israel" collects taxes and customs duties on behalf of the PA. However, since the war on Gaza began, "Israel" has intermittently refused to transfer the revenues.

Israeli Finance Minister Bezalel Smotrich has repeatedly claimed that the funds support “terror", a claim widely rejected by Palestinian officials and international observers.

The withheld funds are a crucial revenue stream for the PA, which has faced mounting financial strain amid the ongoing war and destruction in Gaza.

Read more: 'Israel’s' policies drive West Bank economy toward collapse

  • Spain
  • Egypt
  • Pedro Sanchez
  • Palestinian authority
  • Cairo
  • Jose Manuel Albares

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