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(National Post-Canada) Lawrence Solomon - Portugal, Ireland, Italy, Greece and Spain, the five countries whose financial obligations burden the EU, may soon be joined by another that the EU may unwittingly be taking on - Palestine. If Palestine declares statehood this September, the EU would be implicitly assuming an open-ended financial burden for the country since, without Israeli good will, a Palestinian state couldn't support itself. Almost two-thirds of Palestinian government net income - about $1.5 billion per year - comes from tax collected on the Palestinians' behalf and remitted to them by Israel. The continuation of this revenue stream depends on good relations between a sovereign Palestine and Israel. In addition, 87% of Palestinian exports now go to Israel, making the Palestinian economy dependent on good relations with its neighbor. Furthermore, one-seventh of the total Palestinian workforce, constituting one-quarter of the total Palestinian payroll, work in Israeli settlements, which the PA seeks to ban. Palestine without Israel has no viable economy. If Europe, through its encouragement of a premature Palestine, breaks the Palestinian economy, it could own it. 2011-07-28 00:00:00Full Article
An Independent Palestine Couldn't Pay Its Own Bills
(National Post-Canada) Lawrence Solomon - Portugal, Ireland, Italy, Greece and Spain, the five countries whose financial obligations burden the EU, may soon be joined by another that the EU may unwittingly be taking on - Palestine. If Palestine declares statehood this September, the EU would be implicitly assuming an open-ended financial burden for the country since, without Israeli good will, a Palestinian state couldn't support itself. Almost two-thirds of Palestinian government net income - about $1.5 billion per year - comes from tax collected on the Palestinians' behalf and remitted to them by Israel. The continuation of this revenue stream depends on good relations between a sovereign Palestine and Israel. In addition, 87% of Palestinian exports now go to Israel, making the Palestinian economy dependent on good relations with its neighbor. Furthermore, one-seventh of the total Palestinian workforce, constituting one-quarter of the total Palestinian payroll, work in Israeli settlements, which the PA seeks to ban. Palestine without Israel has no viable economy. If Europe, through its encouragement of a premature Palestine, breaks the Palestinian economy, it could own it. 2011-07-28 00:00:00Full Article
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