The U.N. General Assembly is set to implicitly recognize a sovereign state of Palestine on Thursday despite threats by the United States and Israel to punish the Palestinian Authority by withholding much-needed funds for the West Bank government. A resolution that would lift the Palestinian Authority's U.N. observer status from "entity" to "non-member state," like the Vatican, is expected to pass easily in the 193-nation General Assembly. At least 15 European states plan to vote for it. The Palestinians gave no sign they were turning back, Reuters reported. -- SPA