'Serious fiscal crisis' in Palestinian territories

The World Bank concludes that more private sector investment is needed to achieve sustainable growth

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The World Bank has warned that the Palestinian Authority in the West Bank faces a $400m (£246m) budget shortfall and asked donors to act urgently.

Its latest report on the Palestinian economy says there is a "deepening fiscal crisis" and "worrying signs of economic slowdown".
Israel is criticised for stifling growth in the 60% of the West Bank which comes fully under its control.
The report comes amid protests by Palestinian over rising living costs.
Last week, the Palestinian Authority's Prime Minister, Salam Fayyad, was forced to cut value-added tax (VAT) and fuel prices after several days of strikes and violent demonstrations.
President Mahmoud Abbas also proposed cancelling the 1994 Paris Protocol on economic co-operation with Israel, which was signed following the Oslo Accords.
'Barriers to development' The World Bank report says that the finances of the PA, which governs the West Bank, have been hit by cuts in donations and the failure of donors, including the US and Arab countries, to meet their pledges.

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“Start Quote

Donors do need to act urgently in the face of a serious fiscal crisis facing the PA in the short term”

End Quote Mariam Sherman World Bank country director

At the same time there has been slow economic growth that reduced revenues, and higher than expected expenditure on loans, it adds. The PA has nearly $2bn (£1.2bn) of debt.

The World Bank concludes that more private sector investment is needed to achieve sustainable economic growth in the Palestinian territories.
However, it says this is hampered by Israeli restrictions, most notably in what is known as Area C of the West Bank. which is where most of the land, water and other natural resources are found. The Oslo peace accords placed the area under full Israeli administrative and military control.
Israel says the restrictions are necessary for its security.
"Donors do need to act urgently in the face of a serious fiscal crisis facing the PA in the short term," said Mariam Sherman, World Bank country director for the West Bank and Gaza.
"But even this financial support, sustainable economic growth cannot be achieved without a removal of the barriers preventing sustainable private sector development, particularly in Area C."
The report is published just ahead of a meeting of international donors in New York next week.
The PA has warned for months of a major budget shortfall. On several occasions in the past year, 150,000 civil servants have not been paid on time, says the BBC's West Bank correspondent, Jon Donnison.
Rising prices of food and fuel also contributed to widespread social unrest. Although the average wage for Palestinians in the West Bank is around $20 (£12.20) a day, and the price of fuel is similar to in Europe.
Our correspondent says that some fear if economic conditions do not improve it could bring an end to several years of relative stability.

Lebanon Shia Mekdad clan charged over kidnappings

The Mekdad clan have been angered by the capture of one of their number in Syria

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A military prosecutor in Lebanon has charged six members of a powerful Shia Muslim clan with forming an armed group for terrorist purposes and kidnappings.

The Mekdad clan last month took dozens of Syrians and a Turkish businessman hostage in Lebanon after a family member was abducted by Syrian rebels.

The Mekdads' hostages were freed last week in a raid by the Lebanese army.

The men charged on Tuesday, including the clan's spokesman Maher Mekdad, could face life in prison if convicted.

Syria warplane 'bombs Raqqa petrol station queue'

 

Unverified footage shows what opposition activists say is a petrol station bombed by government forces

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A Syrian warplane has attacked a petrol station in the north-east of the country, killing at least 30 people, opposition activists say.

A rebel group said people had been queuing for petrol and diesel near Ain Issa at the time.

The village is some 20 miles (32km) from the Tal al-Abyad border post, seized by rebels on Wednesday after a lengthy battle with government forces.

The number of casualties was expected to rise, reports said.

Israeli air strike kills two Palestinians in Gaza

The strike hit a four-wheel-drive near the Egyptian border, officials say

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Two members of the ruling Hamas security forces have been killed in an Israeli air strike in the Gaza Strip, Palestinian officials say.

They died when their car was hit in Rafah, on the border with Egypt, Palestinian sources said.

Israel said it hit "two terror operatives", thwarting an attack which was in "a very advanced stage of planning".

Judge denies actress' bid to remove anti-Islam film

Cindy Garcia is also suing the film's suspected producer

A California judge has denied an actress' request to remove from YouTube an anti-Islam video that sparked riots in the Muslim world.

Cindy Lee Garcia says she has received death threats over the film trailer, in a lawsuit against Google, which owns YouTube, and a man linked to the film.

Garcia said she had been misled by the maker of the amateur movie and was unaware of its anti-Muslim content.

Nakoula Basseley Nakoula, the trailer's alleged producer, is in hiding.

Los Angeles Superior Court Judge Luis Lavin said in his ruling that he had rejected Garcia's request partly because the man who is believed to have made the film had not been served a copy of the lawsuit.

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Israeli PM demands US 'red line' on Iran

Israeli PM demands US 'red line' on Iran

Binyamin Netanyahu insists in TV interviews that Tehran is nearly "90 per cent" finished developing an atomic weapon.

Israeli leaders toast the Jewish new year, which began sundown on Sunday, hoping for "stability amidst storms" [EPA]

The gap between Israeli and American perspectives on Iran appeared to widen on Sunday as Prime Minister Binyamin Netanyahu insisted on a "red line" from Washington, claiming Tehran is "90 per cent" finished developing a nuclear bomb.

Netanyahu, speaking on two US political talk shows, pressed the need for a categorical bar on Iran making a weapon, saying such a safeguard had averted nuclear calamity with Russia during the Cold War and could ensure peace again.

The US says all options - including military action against Iran - remain on the table, but top officials reject so-called "red lines" as political grandstanding that might leave them at a strategic disadvantage.

Egypt pursues makers of anti-Islam video

Arrest warrant issued for seven Egyptian Coptic Christians and Florida pastor in symbolic case meant to placate anger.

Pastor Terry Jones told the Associated Press that he was asked to promote the anti-Islam video [EPA]

Egyptian prosecutor's office has issued arrest warrants for seven Egyptian Coptic Christians and a Florida-based American pastor for their alleged role in an anti-Islam video that has sparked deadly riots across the Muslim world. The warrants were released on Tuesday, referring the defendants to trial on charges linked to the film entitled "Innocence of Muslims" which portrays Prophet Muhammad as a fraud, womaniser and buffoon. Riots triggered by the video resulted in the deaths last week of the US ambassador to