Last week, the Israeli government decided to release US100 million from tax collection to the Palestinian Authority. This transfer was approved after Germany exerted pressure on the Israeli leadership, claiming that the money transfer would pave the way for completing the sale of a German submarine, "Dolphin" to Israel, the German newspaper "The Welt am Sonntag" reported on Sunday.
The German newspaper added that Germany informed Israel that it won't be able to continue with the submarine deal, unless Israel releases the Palestinian funds. According to the newspaper, the German parliament approved the deal on Wednesday, only after Israel informed Germany that it is willing to reach a compromise with the Palestinians. On that day, Israeli PM Benjamin Netanyahu announced that the funds, which were frozen will be transferred to the PA.
According to media reports, Berlin has confirmed it had agreed to sell a submarine to Israel for only one third of its original price price. The German parliament has approved a payment of 135 million Euro for the submarine, in next year's budget.
Israel already owns 5 submarines of this kind. This submarine is reportedly capable of carrying nuclear weapons. (Source: www.yallafinance.com )