Palestinian teenagers jump on trampolines and go through hoops in a large tent on the outskirts of Ramallah, the financial hub of the occupied West Bank.
But the circus students are not the only ones bending over backwards: the director of the Palestinian Circus School had to overcome a series of financial obstacles to buy the tent in France and the trampolines in China.
“We are struggling with international payments,” says Mohamad Rabah, the school’s general director, describing an arduous bureaucratic process to purchase equipment that he says could take up to a month.
Since the start of the war in Gaza triggered by an unprecedented attack by Hamas in Israel on October 7, the financial situation of the Palestinian Authority, which exercises limited powers over part of the West Bank, territory illegally occupied by Israel since 1967 , continues to deteriorate.
This is due to the restrictions imposed by the Israeli authorities on the transfer of tax revenues collected by them and due to return to the Palestinian Authority, under agreements signed as part of the Israeli-Palestinian peace process begun in the decade 1990 and now moribund.
The situation may worsen in July, after Israeli Finance Minister Bezalel Smotrich (far right) threatened in May to cut off a vital banking channel between Israel and the West Bank, in response to the recognition by three European countries of the State of Palestine.
Mr Smotrich informed Prime Minister Benjamin Netanyahu that he “does not intend to extend” the state guarantee benefiting “correspondent banks”.
This annual protection, which expires on June 30, is essential to allow two Israeli financial institutions, Hapoalim Bank and Israel Discount Bank, to continue to play their role as correspondents with banks established in the West Bank.
“Humanitarian crisis”
The threat brandished by the Israeli minister aroused serious concern in Washington, Israel’s main ally.
“Cutting off Palestinian banks from their Israeli counterparts would create a humanitarian crisis,” said US Treasury Secretary Janet Yellen.
“These banking channels are essential for completing transactions enabling nearly $8 billion in imports from Israel, including electricity, water, fuel and food, and facilitating nearly $2 billion in imports from Israel. “exports per year on which the livelihoods of Palestinians depend,” she stressed.
A break in banking channels “will have a significant impact on us, due to the fact that our economy depends on the Israeli economy and that Israel controls the borders,” Feras Milhem, governor of the Palestinian Monetary Authority, told AFP.
Palestinian livelihoods have also been affected by bans on workers entering Israel, as well as a sharp decline in tourism in the West Bank.
Western countries fear that Israel’s economic policies will create chaos in the West Bank.
“The banking system could collapse […] The Palestinian Authority is in financial crisis and could collapse before August,” warns a European diplomatic source in Jerusalem on condition of anonymity.
“Economic war”
Palestinian businessmen deplore sharply declining financial results since the start of the war in Gaza.
Imad Rabah, owner of a plastics company, says his net profit has fallen by 50% in one year.
Nakhleh Joubrane, arak producer, mentions a drop in his sales of 30% for the same period. “We have a traditional war in Gaza and we have an economic war in the West Bank.”
Israeli policy aims to push Palestinians to leave the West Bank, said Moussa Shamieh, owner of a women’s clothing company.
“They (Israel) want us to leave our land and they know it will be difficult for us to stay if we cannot do business,” he said.
“We must work on a plan B regarding commercial relations,” recommends Mr. Milhem.
