Germany to Finance Submarine for Israel
Angela Merkel's government allocates funds to subsidize Israel's purchase of German-made submarine; Submarine is Israel's third to be subsidized by Germany.
The German government says it has earmarked some $191 million in next year's budget to subsidize the sale of another Dolphin-type submarine to Israel.
The German Defense Ministry told The Associated Press on Monday that the funds will reduce the price Israel will pay for the German-built submarine by one third.
The funds are included in the 2012 budget proposal currently being discussed by Chancellor Angela Merkel's Cabinet.
Israel already has three Dolphin submarines from Germany, one half-funded and two entirely-funded by Berlin.
Israel took delivery of the first of three of the submarines in 1999. The Dolphin-class submarine is capable of carrying nuclear-tipped missiles, but there is no evidence that Israel has armed the subs with such weapons.
In May, Israel finalized the purchase of a sixth submarine from Germany, with payment to be spread over several years.
The proposed expansion of the diesel-powered Dolphin submarine fleet, considered Israel's vanguard against foes like Iran, had been held up by wrangling with Berlin over the $500 million to $700 million price tag.
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