A new Palestinian government will be created in 10 days, senior Fatah member Nabil Shaath said Tuesday, according to Palestinian news agency Ma'an.

Shaath said the new government's prime minister had not yet been announced, and he did not exclude Salam Fayyad for the position.

RELATED:
Analysis: Can Palestinians separate peace, statehood?
Mashaal: Israel has 1 year to recognize Palestinian state

The Fatah leader told Ma'an that the US and EU were pressuring Israel to release Palestinian Authority tax money, which was frozen when Fatah and Hamas signed their unity deal in Egypt last week.

"We don't have financial reserves and the PA is in debt. It doesn't have the ability to remain stable for a month or two without reserves," Shaath said stressing the risk to government employees who may not receive their salaries.

On Monday, the Palestinian Authority said it had not been able to pay public sector salaries for the first time since 2007 because of Israel's decision to halt the transfer the tax funds.

Prime Minister Salam Fayyad said Israel's decision had put the Ramallah-based government in an impossible financial position.

He added the PA would not be able to pay the monthly wage bill, which totals almost $170 million, until Israel handed over the tax money or foreign governments stepped in to fill the financial gap.

Speaking on the appointment of Fayyad as prime minister of the new Palestinian government, Fatah leader Hussam Khader said the PA premier should be named to the position because his state-building plan has improved the infrastructure of institutions in the West Bank and has corruption.

Khader added that despite Hamas's likely intention to oppose Fayyad's appointment, it would be a favorable move in the eyes of the international community, which has praised Fayyad's accomplishments.

Reuters contributed to this report.

Please LIKE our Facebook page - it makes us stronger