http://www.reuters.com/article/2013/04/10/us-palestinians-fayyad-abbas-idUSBRE93917I20130410

Palestinian Prime Minister Fayyad offers resignation: sources
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By Ali Sawafta

RAMALLAH, West Bank | Wed Apr 10, 2013 5:47pm EDT 

(Reuters) - Palestinian Prime Minister Salam Fayyad offered his resignation to 
President Mahmoud Abbas on Wednesday following a rift between the two men over 
government policy, two sources told Reuters.

Abbas was due to return to the occupied West Bank from Jordan on Thursday, and 
it was not immediately clear whether he would accept the resignation of the 
U.S.-educated economist.

A spokeswoman at Fayyad's office declined to comment on the reports, which 
followed persistent rumors that Abbas wanted to sack Fayyad following internal 
political wrangling.

Western governments have offered staunch support to Fayyad ever since he became 
prime minister in 2007, seeing him as the architect of Palestinian 
state-building efforts, and his departure could complicate their ties with 
Abbas.

Long-strained relations between the 61-year-old Fayyad and Abbas worsened last 
month when the prime minister accepted the resignation of his finance minister, 
against the wishes of the president.

Initially successful in revitalizing a sluggish Palestinian economy, Fayyad ran 
into trouble last year when Israel and the United States withheld vital funds 
to punish the Palestinians for seeking de facto statehood at the United Nations.

They said the unilateral move ran counter to previous accords and their 
financial penalties meant Palestinian public sector salaries went unpaid, 
stoking street protests.

Abbas's Fatah party accused Fayyad of failing to foresee the turmoil and the 
party's council issued an unprecedented rebuke last week, saying: "The policies 
of the current government are improvised and confused in many financial and 
economic issues."

OBAMA SUPPORT

When he visited the West Bank last month, U.S. President Barack Obama 
explicitly described both Abbas and Fayyad as "true partners" in a peace 
process that he hopes to revive between Israeli and Palestinian leaders in the 
coming months.

U.S. Secretary of State John Kerry also met Fayyad this week during a visit to 
Jerusalem in an apparent show of support for the beleaguered prime minister.

Speaking earlier on Wednesday about the rumors of a division between Fayyad and 
Abbas, a senior diplomat in Jerusalem said Western aid donors would be very 
upset to see the respected prime minister leave his post.

"Fayyad's departure would have a serious impact on relations with the 
international community," said the diplomat, who spoke on condition of 
anonymity. "It is hard to overstate how important Fayyad has been."

The diplomat added that Fayyad's institution-building drive in the West Bank 
had been "the single best thing" that had happened in the Palestinian 
territories in recent years, adding that the premier was also highly trusted by 
Israeli leaders.

Fayyad's close ties with the West have irritated senior Fatah officials, who 
have accused him of trying to build an unassailable powerbase, despite the fact 
that he had no significant political support amongst ordinary Palestinians.

The Islamist group Hamas, which controls the Gaza Strip, has repeatedly accused 
Fayyad of helping Israel to blockade its coastal territory and has never 
recognized him.

Fayyad spent two days in hospital earlier this month after suffering severe 
stomach pains. He had a heart attack in 2011.

(Writing by Noah Browning; editing by Crispian Balmer)


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