News Analysis: Unprecedented political, financial challenges await new Palestinian gov't

RAMALLAH, March 11 (Xinhua) -- news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian observers believe that the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government will face unprecedented political and financial challenges as the prime minister-designate Mohammed Shtayyeh has officially begun consultations.

On Sunday, news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian President Mahmoud Abbas assigned his long-time adviser Shtayyeh to form the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government.

The assignment came after the Fatah Central Committee recommended Shtayyeh, also a committee member, to form the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government as successor of former Prime Minister Rami Hamdallah, who resigned on Jan. 29 and was asked by Abbas to serve as acting prime minister until the formation of a news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government.

According to the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian Basic Law, a news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new prime minister shall form a news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government within three weeks from the date of his assignment. The news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new premier shall have the right to extend the period for two more weeks.

Ramallah-based writer and political analyst Mohammad Daraghma said the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government faces serious challenges related to the lack of political horizon due to the cessation of peace negotiations with Israel since 2014 and the crisis of the deteriorating relations with the U.S. administration.

The news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian expert ruled out the possibility of a strategic change in the approach of the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government, adding it is likely that the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government will stick to Abbas' program to manage the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian situation.

"Forming a news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government represents a reconstruction of the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian political system led by the Fatah movement and severing previous relations with Hamas rulers of Gaza as the file of reconciliation reached a dead end," Daraghma told Xinhua.

He said that the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government will be the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government of Fatah party with a number of independent representatives and representatives of Fatah-allied factions, as it is boycotted by a number of PLO factions, notably the Popular and Democratic Front for the Liberation of Palestine and Popular Front for the Liberation of Palestine.

The lack of agreement on the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government with Hamas is likely to lead to a Palestine based on two separate administrations, one led by Fatah in the West Bank and the other led by Hamas in Gaza, which will undoubtedly deepen the internal division, the expert pointed out.

The news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government of Shtayyeh will replace the national consensus news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government, which was formed in mid-2014 and agreed upon by the PLO factions and Hamas movement.

However, the differences between Fatah and Hamas prevented the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government of reconciliation from having full control over Gaza despite the signing of a reconciliation agreement in October 2017.

Hamas violently seized control of the Gaza Strip in the summer of 2007, after weeks of fighting with Abbas' security forces.

Hamas criticized Abbas' decision to form a news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government "without a national consensus," and considered it as an escape from unity and a practical step to reinforce the division.

The Islamic group said it will not recognize "this separatist news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government," stressing that the best way to "correct the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian situation is to form a national unity news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government and to hold general elections."

"Hamas' reaction to the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government is normal because this news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government is being formed without an agreement or a resumption of a dialogue for news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian reconciliation," Director of Masarat Center for Research and Studies in Ramallah Hani al-Masri told Xinhua.

Masri said that this news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government will further expand the internal division, adding that the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government needs a news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new approach initiated by a system based on national partnership to achieve reconciliation.

In addition to internal and external political challenges, the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government will find itself in a difficult financial situation which forced the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinian Authority (PA) to adopt an emergency budget as it is unable to pay full salaries to its employees.

The PA announced on Feb. 27 that it returned money of the tax revenues to the Israeli side after the latter deducted 41.8 million Israeli shekels (11.5 million U.S. dollars) from it.

Israel had decided in February to deduct from the total tax revenues it collects on behalf of the PA, saying that the money it deducted was paid to families of news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xkmgnbc9b106b5428398/index.html" target="_blank">Palestinians who carried out "terrorist acts" against Israel.

Since the negotiations were stalled in 2014, Israel has at times withheld money as a way of protest or pressure.

However, it coincided this time with a financial blockade imposed by the U.S. news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government, and a 70-percent decline in international financial aid.

The PA faces the risk of increasing its budget deficit to 700 million dollars, amid limited resources and revenues, posing a major challenge to its ability to meet its obligations.

"The news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government will face a very difficult financial situation," said Samir Abdullah, director of the Ramallah-based Mas Economic Research Center.

Abdullah explained that the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government will be forced to deal with the reality of austerity measures based on reduced news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government expenditures, including the suspension of appointments, promotions, allowances, reduction of expenditure items and travel tasks as well as stopping the adoption of budgets for development projects.

He also highlighted that the PA's crisis lies in its limited alternatives to fill the deficit in its budget after the cessation of U.S. aid and the decline in international assistance, "which would increase the serious consequences of the Israeli decision and the challenges facing the news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new news.cn/en/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/en/tag/i0xgkzg6e6c9c496e3149a/index.html" target="_blank">government."