
Israel collects customs duties for the Palestinians which it then normally hands over to the Palestinian Authority. However, for the past year, in a fit of pique over the election of Hamas, Israel has arbitrarily refused to give the Authority its money. This contributed to a serious cash-flow crisis as government workers, including police and teachers, went unpaid.
The Israeli generosity has its limits, however. First, they aren't going to release all they owe, retaining over half a billion for further blackmail. Furthermore, they are dictating the rules by which it can be spent. None, for example, can be used to pay those now-desperate civil servants.
Withholding someone else's money, then parceling it out to them in portions, then telling them how they will be allowed to spend it, is I suppose a definition of "chutzpah."
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