JERUSALEM - Israeli Prime Minister Ariel Sharon on Monday denounced recent remarks by his Malaysian counterpart Dr Mahathir Mohamad that Jews rule the world as "slanderous".

In a speech marking the opening session of the Israeli parliament, Sharon also criticised the reaction of Muslim leaders to the comments made at the recent Organization of the Islamic Conference (OIC) which Mahathir hosted in Putrajaya, Malaysia.

"Only a few days ago, we heard the slanderous statements by the prime minister of Malaysia at the Organization of the Islamic States Conference, and the reaction to them by countries which consider themselves 'enlightened'," said Sharon.

"It will take more time for the Arab world, and particularly Palestinian society, to understand that violence and extremism will only lead them to incalculable disaster."

In the speech, Mahathir said: "The Europeans killed six million Jews out of 12 million. But today the Jews rule this world by proxy."

US President George W Bush pulled Mahathir aside at the Asia Pacific Economic Cooperation (Apec) summit in Bangkok on Monday to bluntly denounce his "wrong and divisive" charge, White House spokesperson Scott McClellan said.

Greece clarifies

Meanwhile, the Greek government underlined its condemnation of remarks made by Prime Minister Dr Mahathir Mohamad that "Jews rule the world by proxy" following criticism in Israel that it had tried to block a formal condemnation by EU leaders.

Foreign Minister Georges Papandreou "strongly criticised and condemned these remarks" during the EU leaders' summit in Brussels, his spokesman Panos Beglitis told AFP.

"In no case did Greece block a condemnation" by EU leaders of Mahatir's remarks, made at an Organisation of the Islamic Conference summit last week, Beglitis said.

Although EU leaders attacked Mahathir's words, no reference was made to his comments in the Brussels summit's final declaration, provoking accusations by Israel's Maariv newspaper that Greece, along with French President Jacques Chirac, had blocked a formal condemnation.

Beglitis said EU condemnation of Mahathir's remarks was deemed to be more "effective" if it came in the form of a statement from the Italian presidency of the EU. - AFP