German Chancellor Angela Merkel threatened Prime Minister Binyamin Netanyahu with the halting of a German plan to deliver a submarine to Israel if the latter did not resume the transfer of tax revenues to the Palestinian Authority, German newspaper Welt am Sonntag
reported on Sunday.
According to the report, Israel yielded to pressure from Berlin and unfroze the funds. Immediately after, a German government official announced her country will build and pay up to one-third of the cost of a sixth Dolphin-class submarine to be delivered to the Israeli navy. The agreement in principle to provide the Dolphin-class submarine, which foreign reports say enhances Israel’s second strike capability since it can carry nuclear warheads, comes a month after reports that Germany was reconsidering the deal because of anger at the announcement of plans to build some 1,100 housing units in the capital’s Gilo neighborhood, over the Green Line.