Abbas appoints financial advisor as Palestinian Authority prime minister

Palestinian President Mahmoud Abbas appointed on Thursday the chairman of the Palestinian Funding Fund, Mohammed Mustafa, as prime minister of the Palestinian Authority and tasked him with forming a new authorities.

Why it issues: Mustafa’s appointment and the formation of what’s promised to be a technocratic authorities is the primary political step within the effort to reform and revitalize the Palestinian Authority post-Oct. 7.

• Arab and Western nations are divided on whether or not Mustafa — an Abbas confidant — could have sufficient independence from the Palestinian president to allow vital reform of the Palestinian Authority.
• Mustafa’s supporters say the truth that Abbas trusts him will permit him to conduct the wanted reforms.
• The primary objective of the brand new authorities will probably be to stabilize the Palestinian Authority within the West Financial institution and put together a plan for a way the PA can have a job in governing post-war Gaza. Abbas’ authorities is going through an acute financial disaster.

Driving the information: Final month Palestinian Prime Minister Mohammed Shtayyeh resigned after 5 years in workplace amid rising stress from the U.S. and Arab nations on Abbas to conduct wide-ranging reforms, together with injecting “new blood” into the Palestinian Authority’s management.

• The 69-year-old Mustafa is Abbas’ chief financial adviser and served up to now because the minister of the financial system and the deputy prime minister.
• He beforehand labored for the World Financial institution and obtained his doctorate diploma from George Washington College.

Behind the scenes: Three U.S., Arab and Palestinian officers stated there was an intense debate and stress marketing campaign from completely different Arab and Western nations on Abbas relating to the appointment of the brand new prime minister.

• A number of Arab nations, together with the United Arab Emirates, needed a main minister who isn’t one in every of Abbas’ confidants and that can have extra impartial standing, the sources stated.
• One title talked about was former Palestinian prime minister Salam Fayyad. In accordance with Arab and U.S. officers, Abbas objected to appointing Fayyad however promised any new authorities will probably be technocratic.
• A supply with direct information stated Qatar pressed Abbas to nominate to the brand new authorities people who find themselves accepted by Hamas, together with Islamists, in order that it might be simpler for the brand new authorities to function in Gaza. Abbas rejected this request.

There was additionally some opposition to Mustafa’s appointment contained in the U.S. State Division as a result of he’s an Abbas loyalist and there was concern his appointment wouldn’t be an actual step towards reform, based on Palestinian and U.S. officers.

• A number of officers from the State Division and the White Home have met Mustafa in current months and heard from him what he plans to do if he’s appointed, a senior Palestinian official stated.

• The Palestinian official stated Mustafa additionally shared with U.S. officers a written plan he drafted for post-war Gaza and the rehabilitation of the Palestinian Authority’s financial state of affairs.
• The Biden administration did not weigh in on the id of the brand new prime minister, and determined to evaluate Mustafa and his new authorities by its actions, a U.S. official stated.

The Israeli authorities additionally determined to not oppose Mustafa’s appointment.

• Israeli officers instructed their U.S. counterparts they do not have an issue with Mustafa and they’re going to work with him on all bilateral points aside from Gaza, sources stated.
• Netanyahu just lately once more rejected the involvement of the Palestinian Authority in post-war Gaza claiming it’s supporting terrorism and can’t implement the de-radicalization plan Israel is looking for in Gaza.
• Israeli minister of protection Yoav Gallant and the Israeli safety and intelligence providers assume the Palestinian Authority might want to have a job in post-war Gaza so Palestinians have a substitute for Hamas, Israeli officers stated.

The massive image: Mustafa’s greatest problem will probably be to show to the U.S. and different western nations that assist the PA and to main Arab nations that he’s credible, succesful and keen to push for actual reforms within the authorities.

• With out their confidence, the U.S., the EU and main Arab nations are unlikely to press Israel to agree to permit the Palestinian Authority to play a job in any post-war plan for Gaza.