The German government is investigating claims that EU subsidies were indirectly used by Palestinians to produce schoolbooks that contain anti-semitic passages and encourage violent attacks against Israel.

The textbooks apparently describe Jews as "traitors and disloyal", and tell students that there is no greater act for a Palestinian than to "martyr themselves in the fight against Israel".

One textbook for 12 year-olds says "there is no alternative to the destruction of Israel", according to extracts printed in Germany's Welt am Sonntag newspaper.

The production of the books was financed with a £17 million grant for education and infrastructure paid by the EU to the UN, according to the newspaper.