Israel to release frozen tax funds to Abbas

THE Israeli cabinet yesterday approved the release of frozen tax funds to Palestinian President Mahmoud Abbas, in a step to bolster the moderate leader in his standoff against the Islamic militant group Hamas.

The vote came a day ahead of Israeli Prime Minister Ehud Olmert’s meeting in Egypt today with Mr Abbas, President Hosni Mubarak of Egypt and King Abdullah II of Jordan.

The summit is designed as a high-profile display of support for the Palestinian president against his Hamas rivals, who seized control of the Gaza Strip in a brutal rout of Mr Abbas’ Fatah movement earlier this month.

The infighting has left the Palestinians with two governments — Mr Abbas’ new government in the West Bank, and the Hamas rulers in Gaza.

The main proposal at yesterday’s cabinet meeting was a gradual release of some $550 million (€408m) tax money that Israel has withheld from the Palestinians since Hamas swept Palestinian parliamentary elections in January 2006.

Mr Olmert asked that the funds be released “to support in a phased process the new Palestinian government, which is not a Hamas government”.

Mr Olmert’s spokeswoman, Miri Eisin, said yesterday’s vote was a “decision in principle” to release the funds, and that the “exact amount” would be discussed at today’s summit and then again by the Israeli government.

Meeting participants said the proposal passed with an overwhelming majority; just two hardline ministers voted against it.

The cabinet also discussed the removal of some of the hundreds of roadblocks Israel has erected throughout the West Bank, meeting participants said. The travel restrictions have been put in place on security grounds, though the Palestinians say they are excessive and punitive.