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Europe’s second highest court on Tuesday annulled a European Union decision that had frozen the funds of an exiled Iranian opposition group and called into question the group’s label as a terrorist organization.The ruling by the European Court of First Instance was more than a financial victory for the group, the Mujahedeen Khalq, or People’s Holy Warriors, which has long argued that its terrorist label is unfair.The European court ruled that the European Union had not provided adequate reasons or a fair hearing in deciding to freeze the organization’s assets in 2002 and that the decision “must be annulled.”The European Union issued a statement in response to the ruling saying that the organization remained on the terrorist list and that it would consider appealing to the higher European Court of Justice.“All restrictions resulting from the terror tag should be removed from the Iranian resistance immediately,” the group’s leader, Maryam Rajavi said during a visit to the European Parliament in Strasbourg, France. She said that the ruling proved that her organization was a legitimate resistance movement rather than a terrorist group.The Mujahedeen Khalq was formed by leftist students in Iran in 1965 and quickly became one of the most active groups opposing Shah Mohammad Reza Pahlavi. But the Islamic government of Ayatollah Ruhollah Khomeini turned against the group after the shah’s overthrow in 1979.The group moved its headquarters to France and then to Iraq in 1986, when it set up a well-financed military base. The American military disarmed the militia in May 2003 and has since kept its members confined to the camp near Baghdad.Ms. Rajavi remained in Paris, in charge of the group’s political activities as head of the National Council of Resistance of Iran. She has been lobbying to be taken seriously as a viable opposition movement to topple the theocracy in Iran.She argues that the organization has been unfairly labeled a terrorist organization out of the West’s misguided efforts to engage the Iranian government, and that the only real hope to effect change in Iran, short of war, is to support her organization and give it free rein.

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The European Union condemned on Wednesday the arrest of an Iranian union activist in Iran.In a statement issued by the EU's Finnish Presidency, the 25-nation block strongly condemned the arrest of Tehran bus union leader Mansour Ossanlou by Iranian authorities."The EU strongly condemns the re-arrest of Mansour Ossanlou, the President of the Syndicate of Workers of Tehran and Suburbs Bus Company, which appears to be without credible justification", the EU statement said. "The EU is deeply concerned by reports that Mr Ossanlou was arrested by plain clothes officers who did not present an arrest warrant and that he has not been allowed proper access to legal assistance", it added.It urged Tehran to respect fully the rights to freedom of expression and association and the right to form or join trade unions. "The EU calls on the Iranian regime to uphold its obligations under the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights, and to honor its commitments under the 1998 ILO Declaration on Fundamental Principles and Rights at Work", it said.On Tuesday, Iran's Foreign Ministry spokesman Mohammad-Ali Hosseini voiced concern over "increasing inhuman practices" in Europe.

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CNN reported that the Iranian students staged a rare demonstration on Monday against President Mahmoud Ahmadinejad, setting off firecrackers and burning pictures of him as he delivered a speech at Tehran University.Iran's semi-official FARS news agency and a student news Web site also reported that a group of students Monday briefly interrupted Ahmadinejad's speech at Amir Kabir University by booing and chanting "Death to dictator."A student who attended the speech but did not want to be named confirmed those reports to CNN.But Iran's official state-run news agency, IRNA, said the students "expressed their views in a cordial atmosphere," and chanted "Down with dictators," which was met with agreement by Ahmadinejad, who denounced the "dictatorships" in the United States and Britain.A spokesman for Ahmadinejad's office downplayed the incident, saying that the students burned some papers but it was not clear if they were pictures of the president, as others reported.The spokesman confirmed some firecrackers were set off during the speech, and that students shouted "Death to the dictator" or "dictatorship" but said they could have been referring to London or Washington.And while there was some pushing and verbal arguments among students in the crowd, the spokesman, said he was present at the speech and saw no scuffles or fisticuffs.He said some students approached Ahmadinejad after the speech and the president listened to their criticisms and requests, and assured them they would not be harassed or arrested for the incident.However, an Amir Kabir University student, who witnessed the incident and did not want to be identified, told CNN that the protesting students interrupted Ahmadinejad's speech with slogans, including "Death to the dictator," "Get lost Basijis" -- a reference to right-wing students who support the government -- "Get lost liars" -- referring to the state-run press -- and "Political prisoners must be freed."The student also said he witnessed the protesters burning pictures of Ahmadinejad, tossing firecrackers, and fighting with the pro-Tehran students.

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A man was hanged in public on Tuesday in the southern town of Jahrom, state-run media reported.The man, identified as Ali Mohammad A., was hanged in a public square, according to the state-run news agency ISNA.

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Reuters reported that German Chancellor Angela Merkel said on Tuesday the international community must use all diplomatic options, including sanctions, to prevent Iran from getting nuclear weapons. Merkel said this was why Germany and the five permanent U.N. Security Council members -- the United States, Britain, France, Russia and China -- are working on a resolution that would impose sanctions on Iran."It must be unmistakable and clear to Iran that (getting a nuclear weapon) would not be acceptable," Merkel said."That is why the time has come ... not just to think about, but to work on sanctions," she said.Tehran has rejected an offer made by the six powers in June. The sixth, offered Iran, economic and political benefits in exchange for a suspension of its nuclear enrichment program, which could produce an atomic bomb.

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According to Reuters, the incoming U.N. Secretary-General Ban Ki-moon told Iran on Thursday it was unacceptable to deny the Holocaust or call for Israel to be wiped off the map.Ban, at a news conference, was asked about Iranian President Mahmoud Ahmadinejad, who since coming to power in August last year has caused an outcry by terming the Holocaust a "myth" and calling Israel a "tumor" in the Middle East.Ahmadinejad just ended a two-day international conference on the Holocaust that was dominated by speakers who questioned the extermination of 6 million Jews by the Nazis in World War Two."Denying historical facts especially on such an important subject as the Holocaust is just not acceptable," Ban said."Nor is it acceptable to call for the elimination of states or people," Ban said. "I would like to see this fundamental principle respected in both rhetoric and practice by all the members of the international community."A former South Korean foreign minister, Ban spoke to reporters after he took an oath of office in the U.N. General Assembly as secretary-general to succeed Kofi Annan. He assumes his post on January 1.