The move came following heavy pressure by the US, UN and Europe on Israel to free the money and was taken despite the opposition of the Israeli Foreign minister Avigdor Liberman.
Al Jazeera’s Tony Birtley, reporting from Jerusalem, said that Lieberman had earlier threatened to bring down the government over the decision to release the money.
Israel collects the tax funds for the Palestinians and transfers the money each month, but froze this month’s transfer to punish the Palestinians for their efforts to win UN recognition of their independence.
The Israeli decision came after the Palestinians were accepted to the UN cultural agency Unesco — part of a broader effort for admission as a full member state at the UN.
Israel accuses the Palestinians of trying to bypass peace talks through the campaign. It says that a Palestinian state can be established only through a negotiated peace deal.
Since the Unesco victory, the Palestinian campaign at the UN has stalled due to deadlock in the Security Council, which must approve full membership.
Palestinian officials have not yet decided how to proceed.
Prime Minister Benjamin Netanyahu’s office said he decided to release the money because the Palestinians appear to have suspended their “unilateral moves”. It said the decision would be “reassessed” if the Palestinians resume these steps. — AFP.



