The Domestic and International Economic Implications of a Possible Israeli Annexation in the West Bank

In case that an annexation of some parts of the West Bank would lead to the collapse of the Palestinian Authority, all the efforts and investment conducted by European partners to support the two state solution, the existence of the Authority and the welfare of the Palestinian people would go down the drain. [...] A possible explanation is the decrease in donations provided by the European Union itself and the need of the state members to increase their contribution to the Authority as a complementary step. [...] Even prior to the crisis, the GDP per capita in the West Bank was only 12.1% of the GDP per capita in Israel – $5,044 in the West Bank, compared to $41,735 in Israel. [...] The Israeli Perspective Following the successful stop of the first wave of the outbreak of the COVID-19 pandemic, and the succession in forming a government, Prime Minister Benjamin Netanyahu stared to reach another achievement and to fulfill his election promise – to annex (some parts of) the West Bank. [...] The economic cost is something that the hard core supporters of a decision to annex some parts of the West Bank are willing to bear, as they are only the means to an end – the greater land of Israel.