Germany rails at Austria's refusal to sever economic ties with Tehran, warning the country against setting a 'dangerous precedent'.

German Chancellor Angela Merkel has lashed out at Austria's 22 billion euro OMV agreement to develop Iranian oil and gas fields.

Merkel urged the EU to step up efforts to stop such 'dangerous' agreements.

According to German State Secretary for Foreign Affairs Reinhard Silberberg, Vienna-Tehran cooperation is frustrating a new round of EU sanctions against Iranian banks and its energy sector.

Similar criticism has been directed during several high-level meetings, marking a rift between fellow European Union members Austria and Germany over trade with Iran.

Political analysts believe Israel is bouncing Germany into persuading European companies to end business relations with Iran under the pretext that Tehran is seeking to develop nuclear weapons, an allegation dismissed by the recent US National Intelligence Estimate.

This came after Dr. Yves Pallade, an expert on Germany-Israel relations
claimed that "If the special relationship with Israel and the vows to
defend its right to exist count for anything, this is the time for the
Federal Republic to set an example to follow."
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