TEHRAN (AFP) - Hundreds of Iranians gathered in front of the French Embassy on Sunday to protest at the European Union's likely removal of Islamic republic's exiled Opposition from its list of terror groups. The demonstrators shouted "Death to (Nicolas) Sarkozy" and "Europe be ashamed, leave the hypocrites" - a term Iran uses to describe its main Opposition, the People's Mujahideen of Iran (PMOI). The European Union (EU) is expected to strike PMOI off its list of terror groups on Monday, bringing to an end a long legal battle. "Europeans must be aware of the consequences of such a decision in relations with Iran," said Mojtaba Keshani, a mid-ranking cleric addressing the crowd. The Luxembourg-based Court of First Instance ruled last month that the EU had wrongly frozen the funds of the PMOI and violated its rights by not justifying why it was placed on the list. "The only outcome will be the worsening of ties between Iran and Europe," the cleric said, while acknowledging France's announcement that it had appealed against the ruling. Anti-riot police were deployed around the Embassy in central Tehran and protesters also shouted "Death to America" before calmly breaking off. A similar protest is expected to be held outside the British Embassy on Monday (today) at around 1130 GMT, a demonstrator said. Formed in the 1960s in opposition to the rule of the US-backed Shah, the PMOI joined in the 1979 Islamic revolution but then took up arms against the new clerical regime. It killed several of Iran's new leaders in the first years after the revolution and backed the then Iraqi dictator Saddam Hussein in the 1980-1988 war with Iran. But their attacks had ceased by the early 1990s.