Israel’s finance minister Moshe Kahlon is of Libyan origin, but he’s not quite the bridge-builder with the Palestinians that Haaretz would like him to be. He speaks basic Arabic but has some honest things to say in the language: he tells his Palestinian interlocutors that he is the minister from the refugee camp – the ma’abara where his mother still lives. And declaring ‘Rahat al-Quds!’ (‘You’ve lost Jerusalem’) is his way of speaking truth to power, albeit with a smile.
The tension of the days of rage that followed America’s recognition of Jerusalem as Israel’s capital
remains palpable. The Palestinians have totally cut themselves off from
the Trump administration. A peace deal seems further away than ever.
And into the Muqata in Ramallah marched a senior Israeli minister who,
with a broad smile on his face, declared in Arabic, “Rahat a-Quds!”
(“You’ve lost Jerusalem!”)
another place and time, this certainly could have been a casus belli,
but in this story, which took place at the end of last month, those
present responded with forgiving amusement and shook the hand of their
guest – finance minister and security cabinet member Moshe Kahlon.
wasn’t Kahlon’s first visit to Ramallah, nor was it his first meeting
with senior Palestinian Authority officials. His remark was accepted
forgivingly because they are familiar with Kahlon’s direct but endearing
style. Since he became finance minister, the former Likud member who
now heads a party, Kulanu, which doesn’t have a clear diplomatic agenda,
has succeeded in developing a quiet channel with the Palestinian
leadership. First it was on the basis of economic cooperation and
coordination under the auspices of the defense establishment, while
later on other issues were added, spurred by an American bear hug. In
essence, since the Palestinians declared that they will not come to the negotiating table if Washington is the mediator, Kahlon is currently the only active diplomatic channel.
Palestinian officials refer to him sarcastically as the minister from
the refugee camp, because during one of his meetings he told them of his
difficult childhood in the projects in Givat Olga. His conversations
are sprinkled with the Arabic he learned from his Tripolitan parents.
This detail has attracted the attention of foreign news outlets, which
have labeled him “the Arabic speaker who could lead Israel.” Only Kahlon
really understands Arabic, people familiar with these meetings told
Haaretz, in a barb clearly aimed at Defense Minister Avigdor Lieberman,
but they hasten to add that Kahlon’s Arabic is very basic and his
conversations with PA officials are conducted with the help of
interpreters or in English.
these meetings were never really a secret, even if all the details
aren’t known, the Kulanu chairman tries very hard to conceal this aspect
of his work. On all his very lively social networks, among the hundreds
of announcements about new financial benefits and pictures of his
elderly mother (who still lives in Givat Olga), you will find only a
handful of references to diplomatic or security affairs in general and
to his ties with Ramallah in particular. That’s no coincidence, of
course. Kahlon is proud of his work in this area, but he is also afraid
to undercut his right-wing image.
connection began when he took over the Finance Ministry in 2015, with a
telephone call from his Palestinian counterpart Shukri Bishara, which
led to a meeting at which they were joined by PA Minister for Civilian
Affairs Hussein al-Sheikh. This wasn’t an unusual gesture or a
demonstration of good will. Under the Paris Protocol governing economic
relations between Israel and the PA – which was even updated in 2012 by
Prime Minister Benjamin Netanyahu, who said then this was aimed at
“supporting Palestinian society and strengthening its economy” – Israel
is obligated to coordinate various economic moves with the PA, including
the transfer of taxes collected by Israel on the PA’s behalf.
the years Israeli governments have at various times held these
Palestinian funds hostage, delaying or freezing their transfer as a form
of pressure or punishment. This being the case, even a decision to
regulate the transfer of funds becomes a significant diplomatic
decision, as is a decision on what level of official comes to the
meetings. Kahlon’s associates note that the previous finance minister,
Yair Lapid, had also met with Bishara under these circumstances, but the
relationship never developed in the same way and the debts could not be
In 2017 Kahlon also started meeting with Palestinian Prime Minister Rami Hamdallah,
with Netanyahu’s knowledge and blessing. The two have met three times
in Ramallah and are expected to hold another meeting in Jerusalem. The
pair, along with members of their staffs, also connect by phone. These
meetings are attended by the Coordinator of Government Activities in the
Territories, Maj. Gen. Yoav Mordechai, whose responsibility includes
the financial and security coordination mechanisms. Sometimes
Palestinian intelligence chief Majid Faraj has also attended.
some Palestinian officials aren’t so enthusiastic. They say the
relationship with Kahlon is totally businesslike and stems from the need
to manage economic agreements with Israel. The senior PA officials have
no partiality toward whoever is managing the contacts with them, as
long as he is not a settler, they stress. There are those in the
Palestinian “street” who would prefer to cut off all contact with
Israel, but they don’t understand that the PA can’t do that because it
has obligations, they say.