Israel got annoyed with Palestinian PM Fayyad's EU demand and has delayed transferring tax funds that are key revenue for Palestinians living under Israel restrictions.
Israel told Fayyad's government the delay in transferring the tax revenues to pay Palestinian Authority salaries was due to "technical problems", Palestinian officials said.
But Israeli officials, speaking on condition of anonymity, said on Wednesday that withholding the money, at least temporarily, was linked to Fayyad's EU demand.
Israel's Finance Ministry had no immediate comment.
Palestinian PM to EU: "Do not upgrade Israel ties"
Güncelleme Tarihi: 05 Haziran 2008, 08:36