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Thursday, October 27, 2011

Israel may lose German sub deal

Dolphin classGermany is "reconsidering" its decision to sell Israel a sixth Dolphin class submarine, Yedioth Ahronoth reported on Wednesday.

According to the report, the move was prompted by the tensions between German Chancellor Angela Merkel and Prime Minister Benjamin Netanyahu and Merkel's frustration over the new housing plans approved in east Jerusalem.

Top political sources said that Merkel was irked with Netanyahu, who "gave her the impression that he would be willing to suspend settlement expansion in order to push the Israeli-Palestinian peace talks."

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