The head of the General Security Service of Israel, Nadav Argaman has recently met with the president of the Palestinian Authority Mahmoud Abbas, according to a report from Channel 12 news in Israel.

According to the report, the meeting aimed to convince Abbas to agree to receive the taxes collected by Israel for the Palestinians.

Israel collects taxes from her citizens to be given to the Palestinians for economic purposes. The Knesset passed a law this past February to deduct from these taxes the annual amount the Palestinian Authority pays to terrorists and their families for carrying out terrorist attacks.  The money that is deducted comes out to roughly 10 million Euros per month.

This is now the third month in a row where Palestinian President Mahmoud Abbas has refused to accept the money Israel gives monthly to the Palestinian Authority ”if the amount is not complete”.

As a result, Abbas has drastically cut down funding for essential public services and all government officials. He also ordered all municipal officials in the West Bank to stop paying electricity bills to the Israeli National Electricity Company. Over the past three months, the PA’s electricity debt has increased from  300 million shekels to 2 billion shekels.

Palestinian Authority Prime Minister Mohammad Shtayyeh has warned that their economy will collapse by July or August if the Abbas continues his refusal to accept payments.

In tandem with the turmoil of new elections being called, Israeli Prime Minister Benjamin Netanyahu will have to deal with the severe ramifications of a Palestinian economic collapse.