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October 09, 2008

The Country With Real Leverage In Tehran -- Germany

Thanks to Wall Street Journal European, via Insights Into Today's Middle East, The Country With Real Leverage in Tehran :


At the U.N. General Assembly last month, German Foreign Minister Frank-Walter Steinmeier condemned a speech by Iranian President Mahmoud Ahmadinejad as "blatant anti-Semitism." Mr. Steinmeier also criticized Iran's "delaying tactics" on the nuclear issue and warned that the Iranian government "must not exhaust the patience of the international community." But was he really challenging Iran's nuclear-weapons program?

For all his tough words, Mr. Steinmeier never said what steps the international community should take if Iran continues its "delaying tactics." His British and French colleagues recently repeated their willingness to impose unilateral European sanctions on Iran if Russia and China block new sanctions resolutions in the Security Council. However, Mr. Steinmeier opposes European sanctions, saying they exceed the U.N. mandate. Indeed, so far there is little sign of the Germany government implementing any measures to thwart Iran's ambition to develop nuclear weapons.

Yet no country has more powerful leverage. Germany in particular can exert highly effective economic pressure on Iran. German political scientist Matthias Küntzel has estimated that two-thirds of all Iranian companies use German technology. Simply depriving Iran of German spare parts would severely disrupt Iran's industry.

More than 1,700 German companies are active in Iran. These include household names like Linde, ThyssenKrupp and BASF. Germany's technology and telecommunications giant Siemens has made the biggest financial commitment. As part of a continuing $450 million deal started in 2006, Siemens is committed to sell Iran 150 locomotive engines over six years and to transfer the technical know-how for manufacturing them in Iran within 10 years.

Clearly, Germany by itself has enough economic leverage with Iran to persuade its leaders to halt uranium enrichment, as demanded by the U.N. And yet there is no sign of a will to use it. In fact, German-Iranian business ties are flourishing more than ever. Germany is still Iran's most important trading partner in the West. After a two-year decline, German exports to Iran grew in the first quarter of 2008 by 13.6%, as compared to the same period in 2007. The German control office for foreign trade (BAFA) approved 1,926 business deals from January through July 2008, an astonishing increase of 63% over the same period last year.  (more)

 

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Comments

i am ashamed still having the german citizenship (will change this as soon as legally possible)! this country is leftist, anti-american and very muslim-friendly. read more at www.anno2008.com

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