The developing economic crisis In the Palestinian Authority warrants a heightened alert in Israel as to a possible strategic shift in the Palestinian system. The crisis, should it prove protracted, and all the more so should it worsen, is liable to ignite several threats concerning Israel: an expansion of the circle of Palestinians involved in violent acts, specifically civil disturbances and terrorist attacks; difficulties for the PA to provide services in the civilian realm, which could deepen the Palestinian public's dependence on Israel; Hamas’s intensified presence and tactics in face of the PA’s weakness; and compromises in the security cooperation.
