German deputy leader signals lifting curbs of arms exports to Israel

BERLIN (Reuters) -Germany's Vice Chancellor Lars Klingbeil on Sunday signalled his government would lift restrictions on supplying weapons to Israel that were announced in August as a rebuke to Israel's expanding military operations in Gaza. 

The remarks by Klingbeil to German broadcaster ARD on Sunday evening suggested a policy shift following the Gaza peace plan, with a ceasefire holding between Israel and Hamas for a third day ahead of a peace summit in Egypt on Monday. 

"We will reassess the situation," Klingbeil said about the weapons exports. 

Germany is Israel's second biggest weapons supplier after the U.S., and has long been one of its staunchest supporters, principally because of historical guilt for the Nazi Holocaust - a policy known as the "Staatsraison".

In August however, Germany suspended exports of weaponry that could be used in the Gaza Strip because of Israel's plan to expand its operations there - the first time united Germany had acknowledged denying military support to its long-time ally.

German Chancellor Friedrich Merz is set to travel to Egypt to participate in the signing ceremony for the peace plan.

(Reporting by Christian Kraemer; writing by Matthias Williams; Editing by David Gregorio)