On Sunday the Israeli cabinet approved the release of $100m of about $600m in tax revenue being withheld from the Palestinian Authority.
The move was agreed a day earlier at the first formal meeting between Prime Minister Ehud Olmert and Mr Abbas.
On Monday Mr Peretz announced the easing of travel restriction in the West Bank during a appearance before the Foreign Affairs and Defense Committee of the Israeli parliament.
He said 24 roadblocks would first be dismantled, followed by another 35 at a later stage.
Mr Peretz told reporters that the plan was aimed at "increasing the number of Palestinians working in Israel".
The closures imposed around the West Bank frequently make it difficult or impossible for Palestinians to go to Israel for work.
He added that some Palestinian prisoners held in Israel would be released to mark the Eid festival, due to begin at the end of December.
"Improving the Palestinians' standard of living is part of Israel's security concept," the defense minister said.
Like re-living the 90s all over again, and again, and again... Wonder how many civilians this round of kissy face is going to cost Israel?
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