Israel May Ease Economic Sanctions Against Palestinians

Israeli caretaker Prime Minister Ehud Barak said on Sunday that Israel could ease regulations on the transfer of funds to the Palestinians ahead of the Muslims' upcoming pilgrimage to Mecca in Saudi Arabia.

Barak made the remarks at the weekly cabinet meeting. Israel froze payments of tax revenues to the Palestinians since the outbreak of the Al Aqsa Intifada at the end of last September. The move, coupled with other economic sanctions, has heightened the Palestinians' economic distress.

Israel has been under increasing international pressure to relieve the Palestinian economic difficulties.

At the cabinet meeting, Barak, who lost the prime ministerial election last Tuesday, expressed concern over the mortar firing at the Israeli settlement of Netzarim in the Gaza Strip on Saturday, the second time in a little over a week.

The outgoing prime minister said the Israeli security establishment will take steps to deal with the problem.

In a security overview at the meeting, head of General Security Service (GSS) Avi Dichter said there was a fresh threat of potential attacks on Israeli targets following the car bomb blast in central Jerusalem last Thursday.

In another development, leader of the Palestinian mainstream movement Fatah in the West Bank Marwan Barghouti said on Sunday that there will be a "sharp escalation in all methods of battle against Israel in the next few weeks."

"(Like Barak,) Sharon will also be unable to achieve stability and peace in the region until the end of the Israeli occupation," Barghouti said.






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