Acting Prime Minister Ehud Olmert thanked Merkel for Germany's "efforts to prevent terror groups from receiving funding from European charities." In a turnabout from what had appeared to be Israel's policy, Olmert announced that Israel would not transfer tax funds to the PA this Wednesday - in opposition to monthly procedure over the past few years. Olmert said he could not countenance transferring money to an entity that might very well use it to murder Jews.



Minister Tzachi HaNegbi had said yesterday that it was too early to decide about the transfer of the funds: "We must wait and see how the Palestinian Authority stabilizes."



Chancellor Merkel said that Germany would deal with Hamas only if it recognizes Israel, renounces violence, and fulfills the Palestinian Authority's previous obligations.



Merkel's visit to Israel was significant in that she insisted on it so soon after being elected, only two months ago, and before visiting other countries. "This visit is very important for me," she said upon her arrival at Ben Gurion International Airport.



Both Olmert and Merkel noted that relations between their two countries would always be marked by the Holocaust. Merkel said the relationship would always be "special because of the Holocaust," while Olmert said the relations would never be "normal because of the shadow of the memory of the Holocaust."



In Yad Vashem, a visibly moved Merkel said, “We are full of shame for what happened. I am sorry that so few [righteous] Gentiles were in Germany at that time." A group of Holocaust survivors and their families were on hand to welcome Merkel and senior German officials accompanying her.