Norway’s Foreign Minister Espen Barth Eide has voiced hopes that the United States will pressure Israel to release tax revenues owed to the Palestinian Authority. This comes as discussions advance on phase two of the Gaza ceasefire agreement. The funds, collected by Israel under Oslo Accords, have been a point of contention since late 2023.
The arrangement involves Norway acting as an intermediary for portions of the taxes Israel withholds, particularly those allocated for Gaza. According to reports, Israel approved this mechanism in early 2024 to prevent funds from reaching Hamas while supporting PA services. Norwegian officials emphasize the PA’s financial stability as crucial for regional peace efforts.
What Are the Key Reactions?
Norway’s Foreign Minister Espen Barth Eide highlighted the fragile ceasefire, stating the situation in Gaza remains dire. He stressed the need for concrete steps to avoid return to war or anarchy during talks on phase two. As reported in recent coverage, Eide noted limited international support, saying “not many other friends left” in pushing for resolutions.
Palestinian officials have engaged with Norwegian counterparts on economic stability and tax transfers. Recent meetings in Brussels between Jordan’s FM and Eide addressed Palestinian economy amid Gaza talks. No immediate responses from Israel or the PA on the latest urging were reported.
Supporting Details on Tax Mechanism
Under 1990s interim agreements, Israel collects taxes for the PA, which funds West Bank services and Gaza salaries. Post-October 7, 2023, transfers halted for Gaza portions, estimated at 30% of PA budget. Norway holds these funds, releasing only with Israeli approval to ensure compliance.
This setup followed US pressure to avert PA collapse, vital for post-war Gaza plans involving PA role. Norwegian statements underscore transfers’ role in legitimacy and two-state solution viability. As of early 2025, Norway transferred significant sums like USD 420 million for PA utilities.
What Implications for Gaza Ceasefire Phase Two?
Eide warned that failing phase two risks ceasefire breakdown, urging stabilization forces and peace boards. US involvement is seen as pivotal given its influence on Israel amid limited allies. Confirmed next steps include Brussels discussions on economy and stability.
Ongoing talks focus on PA governance in Gaza post-ceasefire, tying tax flows to broader political process. Norwegian mediation builds on prior successes in unfreezing funds. Developments hinge on Israeli decisions and US diplomatic pushes.
Norway continues facilitating tax transfers to sustain PA operations, linking financial aid to ceasefire durability. Eide’s comments reflect coordinated international efforts for Gaza’s future amid phase two negotiations. This underscores persistent Oslo framework challenges in current context.
