The EU Will Not Stand by Iran – Consortiumnews

While European leaders have made noises that they will defy Donald Trump’s reneging on the Iran nuclear deal and resist U.S. sanctions, in the end the Europeans will give in to U.S., argues Alexander Mercouris in this commentary.

By Alexander Mercouris

Ever since Donald Trump’s announcement that the U.S. would pull out of the Joint Comprehensive Plan of Action (“JCPOA”) with Iran and would unilaterally impose across-the-board sanctions on that country, a procession of European leaders including the leaders of the U.S.’s most powerful European allies – Britain, France and Germany – have publicly declared their intention to stand by the JCPOA.

There is also brave talk of the EU creating safeguards for European companies which in defiance of the U.S. continue to trade or do business with Iran.

President Rouhani of Iran – who has a big personal stake in the JCPOA, which he personally negotiated – has for his part said that Iran will for the time being abide by the terms of the JCPOA whilst it waits to see how Europe will react.

In the meantime the talk of the EU standing up to the U.S. over the JCPOA has increased talk – or hope – that a corner in U.S.-EU relations has been turned, and that the EU will henceforth increasingly defy the U.S., making Donald Trump’s decision to pull out of the JCPOA a further step in the decline of U.S. power.  These words of Craig Murray’s may stand as a good example:

We are yet to see the detail, but by all precedent Trump’s Iran sanctions will also sanction third country companies which trade with Iran, at the least through attacking their transactions through U.S. financial institutions and by sanctioning their U.S. affiliates.

But at a time when U.S. share of the world economy and world trade is steadily shrinking, this encouragement to European and Asian companies to firewall and minimise contact with the U.S. is most unlikely to be long term beneficial to the U.S. In particular, in a period where it is already obvious that the years of the U.S. dollar’s undisputed dominance as the world currency of reference are drawing to a close, the incentive to employ non-U.S. linked means of…

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