EU revives law to counter US sanctions
To save the nuclear deal with Iran, the European Union has decided to revive the law to counter US sanctions. After the US withdrew from the nuclear deal, it had threatened to punish companies that did business with Iran.
To save the nuclear deal with Iran, the European Union has decided to revive the law to counter US sanctions. After the US withdrew from the nuclear deal, it had threatened to punish companies that did business with Iran.
The European Union is set to revive a law to counter US sanctions, according to a report from the Bulgarian capital Sofia by the German news agency. The law is set to be approved on Friday, May 18.
The news of the revival of the US sanctions countermeasures law was announced on Thursday, May 17, by Jean-Claude Juncker, President of the European Commission, at a summit of EU member states in Sofia.
Revival of the 1996 law
"We must act now," said Jean-Claude Juncker, President of the European Commission, in response to US sanctions at the Sofia summit.
The issue is about the support and protection of small and medium-sized companies by the European Union. The law to counter US sanctions effectively provides the grounds for financial support for these European companies and prevents them from being punished by the US.
No details have been released about the implementation of the law. The Anti-Sanctions Act was passed in 1996 during the controversy over sanctions on Cuba, Iran, and Libya.
The Anti-Sanctions Law has never been implemented to this date. The reason for this is that the dispute over these sanctions was resolved in the shadow of negotiations between the European Union and the United States.
There is now talk of revitalizing this law. It must be supplemented in light of the new sanctions foreseen by the US government, an action that is scheduled to take place at 10:30 am on Friday, May 18.
The purpose of the revival of this law is to prepare for the US sanctions that will be implemented on August 6 after the country withdraws from the nuclear deal.
Lowering expectations
German Chancellor Angela Merkel warned about the level of compensation expectations of small companies in connection with the anticipated sanctions from the United States.
Merkel's remarks were in response to French President Emmanuel Macron's remarks, which said the European Union should support small and medium-sized companies seeking economic cooperation with Iran against potential US sanctions.
"Whether we are in a position to provide facilities for small and medium-sized companies is an issue that needs to be examined," Merkel said at the Sofia conference on Thursday, May 17.
Merkel also emphasized that the European Union should not and cannot give rise to the illusion that it is able to pay for all the damages that will be caused to the entire economy of the member states of the Union as a result of the sanctions foreseen by the United States.
Source: DW
