The German government is investigating claims that EU subsidies were indirectly used by Palestinians to produce schoolbooks containing anti-Semitic passages and encouraging violent attacks against Israel.
The textbooks describe Jews as "traitors" and "disloyal", and tell students that there is no greater act for a Palestinian than to "martyr themselves in the fight against Israel".
One textbook for 12-year-olds says "there is no alternative to the destruction of Israel", according to extracts printed in Germany's Welt am Sonntag newspaper yesterday.
The production of the books was financed with a £17 million grant for education and infrastructure paid by the EU to the UN, according to the newspaper.
The German government, which paid over £5 million - or 30 per cent of the grant - said it was investigating the report.
"From our perspective, it is unacceptable to raise children on hate and readiness for violence," said a spokeswoman for the Foreign Ministry.
The controversy arose after Mr Yohanan Manor, a school book researcher in Jerusalem, sent translations of the books to the European Parliament. "This is an open invitation for suicide bomb attacks in Israel," Mr Manor said.
The newspaper report quoted a Palestinian religion book: "In this lesson I learned: European Jews were hated for their anti-Christian beliefs." Meanwhile, a geography book does not define Israel, but labels that entire area as "Palestine".
"Here the seeds are sown for bomb attacks," said Mr Paul Spiegel, head of the Jewish community in Germany.
Mr Armin Laschet, the German speaker in the EU budget committee, said he spoke to Palestinian leader Mr Yasser Arafat about the textbooks, but was told Palestinian school authorities had no money to replace the books.
"I will demand a freeze on all EU aid for Palestinian educational materials until all anti-Semitic passages are removed," Mr Laschet said.
