Under pressure from the nuclear industry and governments in London and Paris, Germany's government yesterday postponed the introduction of a law that would ban the reprocessing of nuclear waste from January 1st, 2000.
Mr Gerhard Schroder's centreleft coalition planned to present the controversial draft law to parliament on Friday. But following a meeting between the Chancellor and representatives from Germany's biggest power companies, the Social Democrats' parliamentary leader, Mr Peter Struck, announced an indefinite postponement.
"I don't believe we will be discussing the nuclear law in parliament this week. There are still many unresolved issues," he said.
Germany's nuclear industry is angry that the reprocessing ban is to be imposed earlier than expected and warns that the government's tactics could wreck talks on the future of the industry, due to begin today.
Germany's coalition of Social Democrats and Greens is committed to closing all the country's nuclear power stations, but the parties disagree about the pace of change.
Britain and France have threatened to sue for compensation if Bonn unilaterally cancels any reprocessing contracts at Sellafield or its French equivalent, La Hague. But the German government is adamant it has no legal liability for any losses incurred by the reprocessing plants. However, Bonn accepts it may have to take back any untreated German nuclear waste now stored abroad.
The power companies are not fighting the fundamental decision to pull out of nuclear power, but argue they need more time to build secure storage areas for waste and to develop new energy sources. Germany's 19 nuclear reactors supply more than 35 per cent of the country's energy needs, a greater proportion than any other form of energy.
Postponing the ban on nuclear reprocessing would not only win Mr Schroder room for manoeuvre in his talks with the power companies, but would also ease relations with London and Paris at a time when, as President of the European Council, he needs all the friends he can find.
PA adds: The British government yesterday warned Germany to pay compensation for a cancelled £1.2 billion nuclear deal or be prepared to face court action. There are fears that hundreds of jobs may be at risk if the contract does not go through or £700 million compensation is not paid.
But Downing Street said it expected Bonn to honour its commitments. The Prime Minister's official spokesman said: "We believe these contracts are legally binding and they were entered into in good faith.
"They are subject to law and, if it is for the courts to decide, we believe they will decide in our favour."
The contract was to clean up spent nuclear fuel and send it back for re-use until 2004. It made the Germans the second-biggest customer for Sellafield after Japan.
