Israeli PM Benjamin Netanyahu has finally agreed to release Palestine's tax funds  Prime Minister Benjamin Netanyahu's top cabinet ministers approved the handover of $100 million in tax money to the Palestinian Authority on Wednesday, despite the vocal opposition of Foreign Minister Avigdor Lieberman.
Lieberman's reason for wanting to hold the tax collection money was the possibility of it being used by a Palestinian unity government that would include Hamas, which controls the Gaza strip.
 Ironically, Hamas official Mahmoud Al-Zahar stated that Palestinian President Mahmoud Abbas is not committed to the reconciliation deal.
“Palestinian reconciliation will not take place, because Abbas is trying to delay it, not work on it,” he said in a media statement.
Al-Zahar also said: “Abbas is not serious, because he demands to carry on parliamentary and presidential elections in May, while the government should be formed in January or February.
“How will the new government be able to secure the elections? What about the other issues in the reconciliation?” Al-Zahar questioned.
Netanyahu said he decided to go back on his decision to freeze the tax money due to the suspension of Palestinian activities at the UN, coupled with the fact that a Fatah-Hamas reconciliation does not appear to be on the horizon.
Al-Zahar considered the main obstacle to the reconciliation is President Abbas who depended on Israel and the US. According to Al-Zahar, this proved Abbas's non-commitment.
He also considered the Islamists winning elections in countries such as Tunisia and Morocco as "a normal thing", and that the "Arab Spring is helping the Palestinian cause".
“This region has lived 1400 years in the light of Islam, and then it was ruled by different ideals, that’s why people need to return to Islam, in order to ensure this nation's dignity and end a dark era in the history of our nation,” Al-Zahar said.
He added “It’s time to end this era and start with what people really want.”
On Wednesday, the decision to return the taxes was finally made, with the forum of eight ruling that Israel would both transfer the withheld October tax funds as well as refrain from delaying taxes collected for the month of November.
A senior Israeli official said that Netanyahu's cabinet would consider freezing tax collection funds in the future if the Palestinians continue unilateral attempts for recognition at the United Nations or in the case of the formation of a unity cabinet between Fatah and Hamas.
Israel would track the money's use, and in the event that the funds are funneled toward terrorists, it will cut those amounts from future transactions, the official indicated.
Al-Zahar also warned of “Israeli propaganda” that aims to sow differences between religious and ethnic sects.
In addition, Al-Zahar send a clear message to Israel saying “the Palestinian people will not be alone any more, because all Arabs will support them, and Israel has to realise that their ability to continue their actions against the Palestinians has reduced to a great extent, so they are in a state of confusion.”
With regard to communication between Hamas and the West, Al- Zahar said there was "real progress in the attitudes of some European countries with Hamas and the rest of the Islamic movements, because these countries are realistic and trying to serve their interests by dealing with the party who has popular, while some European countries link their reactions with US policy.”
Iceland on Tuesday became the first western european country to recognise Palestine as an independent state.
The Icelandic parliament said in a statement on its website that it had passed a motion with 38 of 63 votes in favour of a resolution to recognse Palestine "as an independent and sovereign state" based on borders predating the six-day war of 1967.
The resolution, which coincided with the UN's annual day of solidarity with the Palestinian people, recognised the Palestine Liberation Organisation as the legal authority for a Palestinian state and urged Israel and Palestine to reach a peace agreement.
The vote comes shortly after the Palestinians successfully gained admission to the UN's cultural agency, UNESCO. Iceland was among the European UNESCO members to support the move.