ISRAEL HAS decided to hand over €73 million in tax revenues to the Palestinian Authority, despite opposition from hardline foreign minister Avigdor Lieberman, who had earlier threatened a coalition crisis if the money was transferred.
Israel decided last month to withhold the tax funds it collects on behalf of the Palestinians after the UN cultural organisation Unesco accepted Palestine as a full member.
The Israeli move was condemned by the international community, and the cash-strapped Palestinian Authority warned that the Israeli sanctions were making it difficult to pay salaries and could hurt security co-operation with Israel in the West Bank.
Mr Netanyahu told ministers he decided to go back on his decision due to the suspension of unilateral Palestinian efforts at the UN to become a full member state.
The international community’s Mideast envoy, Tony Blair, welcomed the decision.