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Israel’s latest weapon against Palestine is Egypt’s debt

Will Egypt agree to take in the Palestinian population expelled from Gaza in exchange for the cancellation of its external debt?

Israel’s latest weapon against Palestine is Egypt’s debt
A picture taken from southern Israel near the border with the Gaza Strip on December 18, 2023, shows smoke rising over the Palestinian territory following Israeli bombardment (Photo by Menahem KAHANA / AFP) (Photo by MENAHEM KAHANA/AFP via Getty Images)
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A leaked document written by Gila Gamaliel, the Israeli intelligence minister, came to light in late October amid the devastating war in Gaza.

It set out a proposal to relocate the residents of Gaza to Sinai (Egypt) as a solution “which will produce positive long-term strategic results”. But how could Egypt accept such a solution when most of its population appears to be pro-Palestinian?

The answer can be found in the world of macroeconomics: debt.