ABSTRACT
There is no doubt that fiscal viability is a building block in the process of state formation. The authors have pointed out important challenges explicitly and sometimes implicitly. They give insights into the interrelations and interactions between fiscal, monetary and demographic challenges. Of course, they cannot be expected to draw a precise road map by which these challenges can be addressed, but they have been able to point out the advantages and disadvantages of certain trends. As usual, it is left to the political interaction in the Palestinian arena (given the final status agreement with Israel and the donor support) to find the way to equilibrium positions based upon the weights that might be given to the pros and cons of certain actions.
