Fayyad met with Labor faction head MK Isaac Herzog on Monday in Ramallah and expressed his fears regarding the potential collapse of the Palestinian Authority due to Israel's decision to suspend the transfer of tax funds it collects on the PA's behalf.
In the past two months, Israel has halted the transfer of some $200 million to the PA; penalizing the latter as a result of the UN decision to upgrade the PA to "nonmemebr observer state" status.
As a result of international pressure, Prime Minister Benjamin Netanyahu decided this month to make an exception and transfer $100 million to the PA.
Herzog, who arrived in Ramallah escorted by Palestinian police, told Fayyad that "The scenario in which the PA collapses is catastrophic not only for the Palestinians, but for us as well.
"The government must be made to lose sleep over it. The significance would be that the IDF has to resume responsibility over West Bank cities.
"The current Palestinian Authority government is the sole political partner amongst the Palestinians, and Israel must make great efforts to reach a negotiation."
Herzog is the first Israeli political figure to have visited Ramallah since the Israeli elections. He and Fayyad have had friendly relations for numerous years.
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