EU lawmakers back plan for European Investment Bank work in Iran
05 Jul 2018

EU lawmakers gave approval on Wednesday for the European Investment Bank (EIB) to do business in Iran, overcoming a blocking attempt and keeping alive plans to save the 2015 nuclear deal with Tehran that Washington has abandoned.

The EIB, the European Union’s not-for-profit long term investment arm, is a key pillar of the bloc’s attempts to maintain business links with Iran in the face of Washington’s decision to re-impose sanctions on the Islamic Republic.

However, the EU lawmakers’ decision does not oblige the EIB to work with Iran, a move that could jeopardise its ability to raise money on U.S. markets and so have far reaching consequences for its operations.

The European Parliament overwhelmingly blocked a motion by far-right lawmakers seeking to prevent the European Commission from lifting restrictions on the EIB in Iran, setting the stage for the measure to come into effect at the start of August.

The blocking motion, put forward by the far-right Europe of Freedom and Direct Democracy group (EFDD) that includes Britain’s eurosceptic United Kingdom Independence Party (UKIP), failed with only 93 votes for, 573 against and 11 abstentions.

“We are granting the EIB the capacity to invest in Iran if suitable projects are found,” said Siegfried Muresan, a lawmaker from the centre-right European People’s Party (EPP), which led the preparatory discussions on the Commission’s proposal.

“The Iran deal is good for Europe’s security,” he told Reuters, referring to the accord signed by world powers in 2015 that curbs Tehran’s ability to develop nuclear weapons.

EU governments can technically still block the Commission proposal but are not expected to do so given EU leaders publicly backed the EIB lending plan at a summit in May.

The parliament’s decision is likely to be a morale boost for EU foreign policy chief Federica Mogherini, who will chair a meeting of the foreign ministers of Iran, China, France, Germany and Britain in Vienna on Friday to discuss progress on salvaging the nuclear deal.

– By Francesco Guarascio, 4 July 2018

Link to Reuters.

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