U.S. Treasury Secretary Janet Yellen criticized Israel for its policies regarding work permits and travel restrictions on Palestinians in the occupied West Bank, warning that such measures could escalate regional tensions. Yellen expressed her concerns in an interview, emphasizing the need to address issues that could exacerbate conflict.
She disclosed that she had written to Israeli Prime Minister Benjamin Netanyahu to convey her worries and appreciated Israel’s agreement to resume tax transfers to the Palestinian Authority.
Following the October attack by Palestinian gunmen that resulted in significant casualties, Israel witnessed a halt in its economy. The subsequent military response led to widespread destruction in Gaza and displaced thousands of Palestinians.
Moreover, the closure of borders and restrictions on Palestinian workers led to economic contraction, with the World Bank estimating a 6.4% decline in the Palestinian economy last year.
Yellen highlighted the adverse impact of Israel’s restrictions on both the Palestinian and Israeli economies. She noted that labor shortages caused by travel and commerce limitations had disrupted construction projects in Israel. The situation, she argued, was not conducive to Israel’s economic interests.
In addition to concerns about Israel, Yellen also addressed Egypt’s economic challenges, including reduced revenue from the Suez Canal and declining tourism due to the pandemic.
She expressed support for the International Monetary Fund’s efforts to assist Egypt, indicating that discussions were underway to expand the country’s existing financial assistance program.
