European Union Revives Law Against US Sanctions
To save the nuclear deal with Iran, the European Union has decided to revive the law against US sanctions. After withdrawing from the nuclear deal, the United States threatened to penalize companies that engage in economic cooperation with Iran.
To save the nuclear deal with Iran, the European Union has decided to revive the law against US sanctions. After withdrawing from the nuclear deal, the United States threatened to penalize companies that engage in economic cooperation with Iran.
According to a report by the German news agency from Sofia, the capital of Bulgaria, the European Union intends to revive the law against US sanctions. The law is set to be approved on Friday, May 18 (May 28 in the Persian calendar).
The news of reviving the law against US sanctions was announced on Thursday, May 17 by Jean-Claude Juncker, President of the European Commission, at a summit of leaders of European Union member states in Sofia.
Reviving the 1996 Law
Jean-Claude Juncker, President of the European Commission, said at the Sofia meeting in line with countering US sanctions: “We must take action now.”
The issue concerns supporting and assisting small and medium-sized companies by the European Union. The law against US sanctions practically provides the means for financial support to these European companies and prevents the United States from penalizing these companies.
No information has yet been released about the implementation details of this law. The law against sanctions was approved in 1996 during disputes over sanctions against Cuba, Iran, and Libya.
The law against sanctions has never been implemented to date. The reason for this was that disputes over these sanctions were resolved in the shadow of negotiations between European Union countries and the United States.
Now there is talk of reviving this law. The law must be supplemented in light of new sanctions foreseen by the US government; an action scheduled to take place at 10:30 on Friday, May 18.
The purpose of reviving this law is to prepare for countering US sanctions after this country’s withdrawal from the nuclear deal. The United States is set to implement sanctions starting August 6.
Reducing Expectations
Angela Merkel, Chancellor of Germany, warned about the level of expectations among small companies regarding receiving compensation in connection with penalties expected from the United States.
Merkel’s remarks were in response to statements by Emmanuel Macron, President of France. The French President had said that the European Union should support and protect small and medium-sized companies that want economic cooperation with Iran against potential US penalties.
Merkel said at the Sofia summit on Thursday, May 17 (May 27 in the Persian calendar): “Whether we are in a position to provide facilities for small and medium-sized companies is a matter that requires examination.”
Merkel, however, emphasized that the European Union should not and cannot allow the illusion that it is capable of compensating for all the damages that would result to the entire economy of EU member states as a result of penalties foreseen by the United States.
Source: DW
