The Palestinian Authority avoided total economic collapse primarily through financial lifelines from the European Union and the World Bank, according to a new assessment by the Institute for National Security Studies (INSS).
The research highlights a stark disparity in international support, with Western institutions providing the vast majority of necessary funding while contributions from Arab states amounted to only a fraction of the total aid package.
The findings underscore the precarious fiscal position of the Palestinian Authority, which has seen a significant decline in revenue from Israeli tax transfers.
With domestic resources insufficient to cover operational costs, the PA has become increasingly dependent on external donors.
The INSS report indicates that without the substantial injections from Brussels and Washington-aligned financial bodies, the administrative functions of the PA would have likely ground to a halt.
This dynamic raises questions about the long-term sustainability of the current aid model.