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Erekat: Palestine economy collapsing
by
Saturday 28 October 2006 4:03 PM GMT
Palestine's unemployed have protested outside parliament
A close aide to Mahmoud Abbas, the Palestinian president, has
said
that the territory's economy is close to collapse and urged the
Hamas-led government to deal with the crisis.
The comments by Saeb Erekat, Palestine's chief negotiator and a
member
of Abbas's Fatah group, highlighted a growing power struggle
between
the rival Palestinian groups.
Talking to reporters on Saturday in the West Bank city of Ramallah,
Erekat said that evidence for the scale of the economic problems
came
from research by his own office, the Negotiations Affairs
Department.
He said: "This economy is on the verge of collapse. The figures are
extremely critical. The government must move to deal with this
unprecedented crisis."
According to Erekat, Palestine's gross domestic product (GDP) is
projected to fall to $2.9 billion in 2006 from $4.04 billion in 2005.
"We are revealing these figures on how the economy is collapsing not
to score points but to deal with the crisis," he said.
Yahya Moussa, a Hamas lawmaker, said: "They destroyed the economy
because it was built on the basis of international aid and Israeli
goodwill gestures."
Talks on a coalition government, which might have led to an easing of
the international embargo, collapsed because Hamas and Fatah could not
agree on the terms.
The political tension has been exacerbated by an economic crisis since
Western powers cut aid to the Palestinian Authority to push Hamas into
recognising Israel's right to exist, renouncing violence and accepting
past peace accords.
Abbas wanted an agreement that would have at least implied recognition
of Israel. Hamas, whose charter calls for Israel's destruction, said
it would never recognise Israel, even implicitly.
Abbas is under pressure from some Fatah leaders to get rid of the
elected Hamas administration.
Reuters
By
You can find this article at:
http://english.aljazeera.net/NR/exeres/8F8D10F9-ED08-4D37-910E-2217BD66E847.htm
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