Palestinian Terrorism: why not?

Following the brutal murder of 13-year-old Jewish Israeli girl Hallel Yafi Ariel while she slept yesterday, today yet another Jewish family was destroyed when their car was attacked by a Palestinian terrorist.

The EU and USA  could stop the terrorism immediately by simply cutting off their multi-billion dollar payments to the PA (which are used not just for incitement but also to pay the salaries of terrorists and their families). They won't of course*. But while they refuse to provide any deterrents, I don't understand why, for all his strong words, Netanyahu doesn't either. All I can see - as far as the Palestinians are concerned - are incentives to keep it up.

* The reason they won't was given to me by the British Foreign Office when I complained about the use of British taxpayer money to fund terrorist salaries. They said that 'cutting off such funds would lead to more violence'.  Aso remember that neither the EU nor USA ever criticise Mahmoud Abbas who this week spewed antisemitic blood libels to the rapturous applause of the European Parliament while his side-kick demanded that Palestinians 'slit the throat of every Israeli they find'.