March 2019 Country Office Palestinian Territories The Palestinian Authority has a new Prime Minister Mohammad Shtayyeh follows Rami Hamdallah Marc Frings On the 29th of January, President Mahmoud Abbas accepted the resignation of his Prime Minister Rami Hamdallah. However, the change of power in favor of Mohammad Shtayyeh on 10 March 2019 aggravates the political situation. As challenges increase, Ramallah's will to consolidate power dominates. The end of the Hamdallah era in the Fatah and Hamas. Both movements claimed light of the political split leadership after the elections to the 2006 Palestinian Legislative Council (PLC). During those Before becoming the head of the Palestinian elections, most parliamentary seats were won by Authority government in 2013, Rami Hamdallah the Islamist political wing. It came to a violent had served as the president of the Al Najah internal Palestinian conflict in 2007, which University in Nablus since 1998. His tenure came eventually led to the split. Initially, there were at the time of a deepening political split between difficulties to launch this government. Hamdallah Konrad-Adenauer-Stiftung e. V. country report March 2019 2 2 immediately announced his resignation. Development and Reconstruction Council However, under his leadership, a Fatah-Hamas (PECDAR). In the past, he served as Finance national unity government was formed, which Minister and later on as Labour Minister in PA began its functions in June 2014. After just one governments. He was also responsible for year, President Abbas made a government economic policy within Fatah. His financial reshuffle, which was perceived as provocative by competencies will be even more in demand in the Hamas. future. In 2018, unemployment stood at 32 percent. Half of all young Palestinians are Formally, Hamdallah had resigned, but de facto unemployed. While the population is growing by this step has been forced by the President. There 2.8 percent, economic growth is continuously are three reasons for this: firstly, the resignation dropping and currently stands at only 1.5 came due to increasing tensions between Hamas percent. At the same time, the numbers of those and Fatah, as a result of which the leadership in living beneath the poverty threshold have risen Ramallah wanted to consolidate its power; to just under 29 percent. secondly, Hamdallah was later blamed for a failed social security reform that has provoked So far, Mohammad Shtayyeh has not stepped out massive street protests since the fall of 2018. The as an adversary to President Abbas. With regard social security reform was withdrawn by Abbas. to the political split, the President takes a tough Finally, it has become increasingly apparent that stance against Hamas. This leaves no middle way. the preparation for the "post-Abbas era" is being Shtayyeh is expected by Fatah to support this advanced among the political elite. course. With his international background - he earned his doctorate at the University of Sussex - The new prime minister: not a and initiatives for better donor coordination in technocrat, but a sign of power development cooperation, Shtayyeh is no stranger for the international community. With the appointment of Mohammad Shtayyeh as Prime Minister, a politician who is the At the age of 61, Shtayyeh also represents the antithesis of Rami Hamdallah in all aspects is at middle-aged Fatah functionaries who molded the the pinnacle of the office of prime minister. Until first intifada and who could serve as a hinge for a the end, Hamdallah’s reputation was that of a comprehensive democratic renewal and change technocrat. Without a political network, he was of leadership. This could help the youth who not equipped with counterbalance to the strong make up 70 percent of the population under the president. He was widely perceived as a puppet age of 30 or younger in the occupied territories of the president, with miserable poll results and and open the way to include them into the low political charisma. political decision-making process. The first impression is that with this profile the new Prime On the other hand, Shtayyeh has a long career in Minister could set the grounds for important and the Fatah, PLO and PA echelons as a supporter of considerations that are long overdue. Meanwhile, the two-state solution. He has been involved in he will have to get used to the restrictions of the various negotiation rounds since the Madrid PA: power lies not with the Prime Minister, but Peace Conference (1991). Prior to that, he took primarily in the presidential palace. It is Mahmud part in the first Intifada, which broke out in 1987 Abbas alone who ultimately decides in regard to in the occupied territories. He expressed key issues. disappointment with President Obama and has recently voiced concern that the two-state Reconciliation slips further away solution would not survive Donald Trump's presidency. As a member of the Fatah Central The split has meanwhile permeated deeply into Committee, Shtayyeh has been for many years a politics and society. No initiative has so far been member of the inner power circle of the able to bring about the necessary reconciliation Palestinian leadership. Additionally, he was until between the feuding political movements Fatah recently the head of the Palestinian Economic and Hamas. However, it is urgently needed, as it Konrad-Adenauer-Stiftung e. V. country report March 2019 3 3 has been emphasized time and again that only if Hamas rejected the choice of new prime minister. it can be overcome will the project of democratic Fawzi Barhoum, spokesman for the movement in renewal be advanced in a socially comprehensive Gaza, sharply criticized the appointment: "The manner – not only within the Palestinian new government formed without consensus Authority but also within the Palestine Liberation (between factions) demonstrates Abbas' Organization. Although Egypt's reconciliation unilateral action and power monopoly. Abbas agreement of October 2017 provided initial relief bypasses the previously signed reconciliation for the civilian population in Gaza, it ultimately agreement, prepares for the final disconnection failed because of the unwillingness of Fatah and of the Gaza Strip from the West Bank, and Hamas to make painful concessions. In light of augments the gap within the Palestinian the March 2018 assassination attempt on population”. Hamas made it clear that it would Hamdallah and Majed Farraj, Head of the not recognize the “separatist government”, which Palestinian Intelligence Services, relations according to Hamas was formed without national hardened once again. consensus. On behalf of Hamas, Barhoum demanded the formation of a unity government However, prior to that, it was clear that Hamas with all Palestinian factions and the holding of and Fatah are not interested in a settlement and PLC elections. Hamas has opted for a decisively at the same time are promoting strategies that apathetic external statement. It was posted on sustain their agendas. While Islamist Hamas has the usually very active Hamas Twitter account in been thriving since 2017 with a new program the form of a short message. In contrast, the ("political document"), a new leadership following majority of tweets in recent days was on the internal elections and the taking over of the political and economic relations with Qatar, the "Great March of Return,", which had originally cooperation with Egypt and the conflict with been a civic initiative, the secular block was Israel. limping behind, ragged and torn apart. Despite the diverse opportunities for change within Fatah Between blockade and regional and the PLO, cadre and programmatic changes control: Hamas' accomplishments in have not materialized. It seems that President Gaza Mahmoud Abbas has consolidated his power to such an extent that he will not resign during his Hamas is currently in a dilemma. On the one lifetime, leaving the reconciliation chapter to his hand, it benefits from Fatah's weakness and successor. internal fragmentation, as well as its strategy of portraying itself as a political movement that Although Fatah is gaining ground in public takes care of the needs of the vulnerable people perception, one should not forget that it is no in Gaza and forges regional alliances to this end. longer a closed movement. Within the party, On the other hand, Hamas is standing with its several individuals are struggling for the optimal back to the wall. Together with the two million exit for the post-Abbas era. Moreover, inhabitants of the Gaza Strip, Hamas clearly feels Mohammad Dahlan, the exiled Fatah politician the effects of Israel’s and Egypt’s effective control (2011) and ex-security chief of the Gaza Strip, is over the Strip. The United Nations Relief and longing for a new confrontation with President Works Agency for Palestine refugees alone Abbas. Dahlan enjoys high regard among some provides food aid to one million Gazans. The parts of Fatah, especially in Gaza. Because of his economy has largely collapsed while Hamas can familial roots, Dahlan also maintains good barely provide for its own employees. As a result, relations with the current Hamas elite, which he the Islamists are inevitably dependent on has known since childhood. Should legislative external help. The Emirate of Qatar, which has elections take place, there is a risk that secular been the target of Saudi Arabia and allied Gulf forces, who might enter the elections race with monarchies since June 2017, continues to more than one list, might lose to the Islamists. intensively support Hamas. It is steering forward the Gaza reconstruction after three devastating wars and has recently contributed to ease Gaza’s Konrad-Adenauer-Stiftung e. V. country report March 2019 4 4 budget with the amount of $ 90 million. It is controlled, also meant an attack on the political worth noting that the first installments found structure.