E.U., U.S. Slam Israel for Freeze On Palestine Revenue Transfer

The European Union and the United States have opposed Israel's move to halt the monthly transfer of revenues to Palestinians following the latter's bid to join the International Criminal Court (I.C.C.).

In a statement issued on Tuesday, E.U. High Representative Federica Mogherini criticized Israel for turning its back on its duty to Palestine.

"The decision of the Israeli government to halt the transfer of tax revenues to the Palestinian Authority runs counter to Israel's obligations under the Paris Protocol. An effective Palestinian Authority, committed to non-violence and a peaceful resolution of the conflict, is a key element for a two-State solution," said E.U.'s foreign policy chief.

Mogherini added that Israel's move undermines E.U.'s contributions for a future Palestinian state.

"In this regard, the E.U. is providing considerable support, including financial assistance, to ensure the building of the institutions and infrastructure of a future Palestinian state. These achievements should not be put at risk by not meeting obligations regarding the timely and transparent transfer of tax and custom revenues."

U.S. State Department spokesperson Jen Psaki, on the other hand, urged both Israel and Palestine to avoid making moves that will worsen the status quo.

"We call on both sides to avoid actions that raise tensions and make it more difficult to return to direct negotiations. Obviously, that would – this action would qualify in that category," Psaki told reporters in a briefing.

"As we've said consistently, the path to a two-state solution with a Palestinian state living side by side in peace and security with Israel can only be achieved through direct negotiations between the two sides," she also said.

Israel suspended the revenue transfer after President Mahmoud Abba's approach to the I.C.C. and other international agency, Reuters quoted an unnamed Israeli official as saying.

The country considered Abba's move as a unilateral step that weakened hopes for a peace negotiation.

The monthly transfer amounts to 500 million Israeli shekels (around $125 million), which Palestinians depend on for government operations and salaries of public employees.