(EuroNews.net)
Washington has defended its decision to ban companies from countries who opposed the Iraq war from bidding for reconstruction projects. The move has re-ignited bitter trans-Atlantic tensions. The projects in Iraq are worth $18.6 billion. White House spokesman Scott McClellan said it was natural they would be awarded to US allies.
"We are talking about US taxpayer dollars here and I think it is appropriate and reasonable to expect that the Iraqi people and those countries who have been working with the United States and contributing forces to the efforts in Iraq would be the ones that would be eligible for the prime contracts," he said.
Germany, which for more than a century built much of modern Iraq, said it was stunned.
Foreign Minister Joschka Fischer said: "From our side, all I can say is that we noted the reports today with astonishment and we will be speaking about it with the American side."
France and the European Commission say they will investigate whether the US is breaking international trade rules.
The US cited national security concerns for its decision but some analysts say the real reason is to punish the opponents of the war.
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