German Chancellor Angela Merkel said Germans are still 'filled with shame' about the Nazi genocide of 6 million Jews. -- PHOTO: REUTERS

Speaking in German on Tuesday at the Knesset, Israel's parliament, Ms Merkel pledged to stand by Israel's side against any threat, particularly from Iran, and paying tribute to the victims of the Holocaust. In a rare show of positive emotion, Israel's fractious lawmakers stood and applauded.

In an emotional speech capping a three-day visit, Ms Merkel said Germans are still 'filled with shame' about the Nazi genocide of 6 million Jews. Yet her extraordinarily warm reception by the Jewish state also signalled that the two nations are increasingly willing to look to the future.

Germany has proven a staunch ally of Israel, particularly since Merkel became chancellor in 2005. Israel's leaders said they are now counting on Germany to take a lead in diplomatic efforts to prevent Iran from obtaining nuclear weapons.

'I think that we were able to open a new chapter in German-Israeli relations,' Ms Merkel later told Germany's n-tv television, brushing aside suggestions that her strong support for Israel could make Germany appear biased against the Palestinians.

'We're on Israel's side and despite that, and perhaps because of that, on the side of the peace process,' she said.

Protests against her speaking in German to the Knesset were mild; in 2000, then-German President Johannes Rau had broken that taboo.

Just a handful of lawmakers stayed away on Tuesday, and even the most outspoken among them, Arye Eldad, said he considered Ms Merkel a friend of Israel but could not bear hearing the language of the murderers of his grandparents.

Israel and Germany established diplomatic ties in 1965, two decades after the end of World War II. Since then, Germany has become Israel's second largest trading partner, and has paid 25 billion euros (S$55 billion) in reparations to Holocaust survivors in Israel.

On Monday, the two nations deepened the ties further, agreeing to annual consultations of their two Cabinets. It's a first for Israel, though Germany has a similar arrangement with five other nations.

Ms Merkel's parliament speech was the emotional highlight of her trip. She was given a red carpet welcome, with the German national flag raised over parliament. About 1,000 guests attended the special session, including Holocaust survivors, Jewish, Christian and Muslim religious leaders, and residents of Israeli towns targeted by Gaza rocket fire.

In her speech, Ms Merkel started by paying tribute to those killed by Nazi Germany during World War II.

'The mass murder of 6 million Jews, carried out in the name of Germany, has brought indescribable suffering to the Jewish people, Europe and the entire world,' she said.

Ms Merkel said Germany would always stand by Israel, and promised to be vigilant about Iran's nuclear programme. 'If Iran were to obtain nuclear weapons, it would have disastrous consequences,' she said.

'We have to prevent this.' Introducing Merkel, Israeli leaders appealed to her to do everything she could to stop Iran's nuclear programme.

Israel believes Iran is trying to develop nuclear weapons, a fear underscored by Iranian President Mahmoud Ahmadinejad's frequent calls for Israel's destruction. Iran says its nuclear programme is peaceful.

Israeli Prime Minister Ehud Olmert praised Ms Merkel's 'strong and determined position against the horrific calls from the president of Iran to wipe Israel off the map and against Teheran's trickery and deceit.'

Born in 1954, nine years after the end of the war, Ms Merkel grew up in former East Germany, the daughter of a pastor. In her speech, she referred to her former country's refusal to take responsibility for the Holocaust; until unification in 1990, that role was shouldered by West Germany alone.

She said Communist East Germany considered the Nazi past as a West German problem. 'It took 40 years until the entire Germany ... acknowledged its responsibility for history and for the state of Israel,' she said.

Two-state solution for conflict
She expressed support for a two-state solution to the Israeli-Palestinian conflict, but also said Israel does not need unsolicited advice from outsiders.

Germany, like other European nations, has little influence on the ongoing Israeli-Palestinian peace talks - that's a role largely reserved for the US - but has contributed hundreds of millions of dollars in aid to the Palestinians over the past decade. Merkel did not meet Palestinian leaders during her current trip to Israel. -- AP