Official confirms German submarine deal hung on PA taxes

A senior official confirmed Wednesday that Germany only agreed to supply Israel with its sixth Dolphin-class submarine if Jerusalem unfroze $100 million in tax revenue it was withholding from the Palestinian Authority, Army Radio reported.
"The [submarine] was the icing on the cake Israel received for agreeing to the European request [to transfer the funds]," the official said.
Germany agreed to help build and pay for up to one third of the cost for a Dolphin-class submarine.
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