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Patriot Games
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http://www.newsmax.com/newsfront/europe_sanctions_iran/2007/10/26/44351.html
Europeans Mull Sanctions Against Iran
Friday, October 26, 2007
PARIS -- Britain and France are leading a push for new EU sanctions to
punish Iran over its nuclear program. But while European nations
increasingly fear a war in their backyard, the continent is divided over how
to deal with the crisis.
The United States raised the stakes this week with new sanctions targeting
the Iranian Revolutionary Guards, which Washington accuses of supporting
terrorism by backing Shiite militants in Iraq. The announcement raised the
question of whether the European Union would follow suit.
France, long viewed as too busy making money in Iran to punish it over its
nuclear program, is now seeking to hurt Tehran economically. Britain also
sees tougher sanctions as essential.
But few other European nations clamoring to support stepped-up EU sanctions.
The divisions mirror those that split the continent over Iraq, though the
fault lines have shifted.
"It's not unthinkable that (Europe) could reach symbolic sanctions, but it
will be complicated to get much further. There's just too much division,"
said Philippe Moreau-Defarges of the French Institute for International
Relations. "France is pretty isolated, aside from Britain."
Since the United States first slapped sanctions on Iran in 1979, European
companies have continued to rake in profits from business in Iran, from the
oil sector to banking deals.
While corporate rivals in Asia or elsewhere could fill a void left by the
possible loss of European companies in Iran, EU expertise in the financial
or industrial sectors would be missed, analysts said. Iran already faces
limited EU sanctions and visa bans.
Concerns have been rising in some European corners that the United States or
Israel might attack to prevent Iran from developing atomic bombs. But few EU
members agree on what measures to take to make sure war does not break out.
Iran insists its nuclear program is designed strictly to produce electricity
and has repeatedly defied U.N. demands that it suspend uranium enrichment _
a possible pathway to atomic weapons.
EU foreign ministers in mid-October failed to agree on new sanctions sought
by French Foreign Minister Bernard Kouchner. He sent a letter to European
counterparts Oct. 2 urging them to examine new EU sanctions, mainly on
Iran's financial sector, to complement efforts toward a third set of U.N.
Security Council sanctions.
But Germany and Italy _ Iran's biggest EU trading partner _ want to give
diplomacy and current sanctions more time, looking for unity through the
United Nations.
"These are countries that are discreet in their international relations and
have economic ties to Iran," in industries like metals, chemicals and oil,
said Francois Gere, an Iran specialist and head of the French Institute of
Strategic Analysis.
After meeting Wednesday with Iranian officials, Italian Premier Romano Prodi
praised the efforts of EU and Iranian negotiators and said dialogue was "the
only instrument" to reach a solution.
The new dynamic of European ties with the United States is central to the
equation.
Sarkozy has sought to rekindle ties with the U.S. that soured during the
Iraq war. Britain has been a stalwart U.S. friend. Several EU newcomers from
eastern Europe tend to favor tougher sanctions, mostly because of their
pro-U.S. affinities, analysts said.
Sarkozy said in August he wanted to avoid "a catastrophic alternative: an
Iranian bomb, or the bombing of Iran" if diplomacy fails. The mere
suggestion from France of military action against Iran sent shockwaves
through diplomatic circles. But Sarkozy's comments appear designed to rally
the international community around the idea of a forceful strategy on Iran
that stops short of war.
Sarkozy also apparently wants to set the example that France is willing to
take a hard line against Iran despite its economic interests there. French
lenders hold more outstanding Iranian debt of any in Europe _ some $5.9
billion _ or more than a quarter of all foreign claims there, according to
Bank for International Settlements figures provided in September.
French automaker Renault has invested millions in a partnership to develop a
local equivalent of its Logan sedan. A Renault spokeswoman said that
existing sanctions on Iran have stalled the rollout of the production line
that could make up to 300,000 cars per year for the Iranian market.
Some analysts, however, say France's tough stance is just for show.
"Though their rhetoric has been very staunch, in practice what they're going
to do is a totally different thing," said Roger Howard, author of "Iran
Oil," a book on the Mideast oil and the United States.
French oil company Total SA is close to finalizing a deal to develop the
latest phase of Iran's South Pars natural gas field, Howard said. Total has
declined to comment about possible sanctions.
"If Sarkozy and Kouchner are that hawkish, they can put pressure on them to
pull the deal or distance themselves from it," he said.
Europeans Mull Sanctions Against Iran
Friday, October 26, 2007
PARIS -- Britain and France are leading a push for new EU sanctions to
punish Iran over its nuclear program. But while European nations
increasingly fear a war in their backyard, the continent is divided over how
to deal with the crisis.
The United States raised the stakes this week with new sanctions targeting
the Iranian Revolutionary Guards, which Washington accuses of supporting
terrorism by backing Shiite militants in Iraq. The announcement raised the
question of whether the European Union would follow suit.
France, long viewed as too busy making money in Iran to punish it over its
nuclear program, is now seeking to hurt Tehran economically. Britain also
sees tougher sanctions as essential.
But few other European nations clamoring to support stepped-up EU sanctions.
The divisions mirror those that split the continent over Iraq, though the
fault lines have shifted.
"It's not unthinkable that (Europe) could reach symbolic sanctions, but it
will be complicated to get much further. There's just too much division,"
said Philippe Moreau-Defarges of the French Institute for International
Relations. "France is pretty isolated, aside from Britain."
Since the United States first slapped sanctions on Iran in 1979, European
companies have continued to rake in profits from business in Iran, from the
oil sector to banking deals.
While corporate rivals in Asia or elsewhere could fill a void left by the
possible loss of European companies in Iran, EU expertise in the financial
or industrial sectors would be missed, analysts said. Iran already faces
limited EU sanctions and visa bans.
Concerns have been rising in some European corners that the United States or
Israel might attack to prevent Iran from developing atomic bombs. But few EU
members agree on what measures to take to make sure war does not break out.
Iran insists its nuclear program is designed strictly to produce electricity
and has repeatedly defied U.N. demands that it suspend uranium enrichment _
a possible pathway to atomic weapons.
EU foreign ministers in mid-October failed to agree on new sanctions sought
by French Foreign Minister Bernard Kouchner. He sent a letter to European
counterparts Oct. 2 urging them to examine new EU sanctions, mainly on
Iran's financial sector, to complement efforts toward a third set of U.N.
Security Council sanctions.
But Germany and Italy _ Iran's biggest EU trading partner _ want to give
diplomacy and current sanctions more time, looking for unity through the
United Nations.
"These are countries that are discreet in their international relations and
have economic ties to Iran," in industries like metals, chemicals and oil,
said Francois Gere, an Iran specialist and head of the French Institute of
Strategic Analysis.
After meeting Wednesday with Iranian officials, Italian Premier Romano Prodi
praised the efforts of EU and Iranian negotiators and said dialogue was "the
only instrument" to reach a solution.
The new dynamic of European ties with the United States is central to the
equation.
Sarkozy has sought to rekindle ties with the U.S. that soured during the
Iraq war. Britain has been a stalwart U.S. friend. Several EU newcomers from
eastern Europe tend to favor tougher sanctions, mostly because of their
pro-U.S. affinities, analysts said.
Sarkozy said in August he wanted to avoid "a catastrophic alternative: an
Iranian bomb, or the bombing of Iran" if diplomacy fails. The mere
suggestion from France of military action against Iran sent shockwaves
through diplomatic circles. But Sarkozy's comments appear designed to rally
the international community around the idea of a forceful strategy on Iran
that stops short of war.
Sarkozy also apparently wants to set the example that France is willing to
take a hard line against Iran despite its economic interests there. French
lenders hold more outstanding Iranian debt of any in Europe _ some $5.9
billion _ or more than a quarter of all foreign claims there, according to
Bank for International Settlements figures provided in September.
French automaker Renault has invested millions in a partnership to develop a
local equivalent of its Logan sedan. A Renault spokeswoman said that
existing sanctions on Iran have stalled the rollout of the production line
that could make up to 300,000 cars per year for the Iranian market.
Some analysts, however, say France's tough stance is just for show.
"Though their rhetoric has been very staunch, in practice what they're going
to do is a totally different thing," said Roger Howard, author of "Iran
Oil," a book on the Mideast oil and the United States.
French oil company Total SA is close to finalizing a deal to develop the
latest phase of Iran's South Pars natural gas field, Howard said. Total has
declined to comment about possible sanctions.
"If Sarkozy and Kouchner are that hawkish, they can put pressure on them to
pull the deal or distance themselves from it," he said.
