STOCKHOLM (Reuters/AFP) - Sweden vowed to protect staff at European Union embassies in Iran on Wednesday, the first day of its EU presidency, but Tehran accused it of interfering in its affairs and demanded an apology. Irans armed forces chief of staff, meanwhile, said the European Union was not qualified to hold talks over the countrys disputed nuclear programme. Deteriorating relations with Iran could pose a big challenge for Sweden in its six-month presidency, during which it wants to guide Europe out of its worst economic crisis in decades and agree an EU position for climate change talks. Swedish Prime Minister Fredrik Reinfeldt expressed concern about events in Iran but ruled out immediate action. He denied EU member states had agreed to withdraw ambassadors from Iran over the detention of three British Embassy employees. We have to show solidarity and present a united front in the EU, and we have to discuss what measures might be involved, but we want to follow developments (in Iran), Reinfeldt told a news conference marking the handover of the EU presidency. He said the EU wanted to show support for calls for reform but must not polarise Iran from the rest of the world so that we are made an excuse for the use of violence and oppression inside Iran. That is the balance that needs to be struck. Despite the EUs pledges to keep talking, Iran accused it of interference and demanded an apology before any more talks on Tehrans nuclear programme. Because of the interference of this (EU) group in the post-election riots ... they have lost their qualification to hold nuclear talks with Iran, Irans armed forces chief of staff Major-General Hassan Firouzabadi was quoted as saying by the semi-official Fars news agency. Earlier, European diplomats said EU countries are considering a proposal from Britain to recall all their ambassadors from Iran in protest at the detention of British embassy employees. The source said the plan involves a temporary recall of a few days as a sign of protest, but added that there was a degree of hesitation over the issue. The British proposal is doing the rounds amongst the EU member states... We should know more on Thursday (today) when a meeting is set to be held in Stockholm between the political directors of the (different European) foreign ministries, the source said. The source stressed that no deal on a recall had been reached as yet, while another European diplomatic source admitted it would be difficult for all 27 EU member states to agree on such a measure. One EU diplomat told AFP there were a number of suggestions on the table, one of which includes a coordinated pull-out of all EU ambassadors from Tehran. (But) I am not sure that will be the first step, the diplomat said. What we want to ensure is that the measures we take ensure the release of the detained staff, the source said.