Xinhua Middle East news summary at 2200 GMT, Dec. 17

ISTANBUL -- Turkey on Sunday blasted the new Austrian coalition over its attempt to end Ankara's bid to join the European Union, threatening retaliation in case of Vienna pressing ahead with it.

"The unfortunate and shortsighted statement regarding Turkey in the program of the new government of Austria confirms concerns about a political movement which takes discrimination and alienation as its basis," said a statement issued by the Turkish Foreign Ministry. (Turkey-Austria-Ties)

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ISTANBUL -- Turkish President Recep Tayyip Erdogan on Sunday reaffirmed Turkey's intention to open an embassy in East Jerusalem, which was recognized as the capital of the State of Palestine by Islamic leaders days ago.

"We have already declared East Jerusalem as the capital of the Palestinian State but we have not been able to open our embassy there because Jerusalem is currently under occupation," said Erdogan at a meeting of the ruling Justice and Development Party in central Anatolian province of Karaman. (Turkey-Palestine-Jerusalem)

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TEHRAN -- The newly-established free economic zone on the Iranian-Armenian border would boost bilateral trade between the two countries, said Iranian Ambassador to Armenia Kazem Sajjadi on Sunday.

"The launch of the Meghri Free Economic Zone will increase the trade turnover volumes between Armenia and Iran," said the Iranian envoy. (Iran-Armenia-Economy)

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CAIRO -- The Arab League (AL) announced Sunday that it has formed a ministerial delegation tasked with responding to the U.S. decision to recognize Jerusalem as Israel's capital.

The delegation will respond on the diplomatic and media levels to "the dangerous U.S. decision to recognize Jerusalem as the capital of Israel," AL spokesman Mhamoud Afifi said in a statement. (Egypt-Arab League-Jerusalem-U.S.) Enditem