Just a few reminders of how Germany is proving itself as a responsible world citizen…
[quote]Germany’s stakes in the Iran crisis
Germany is Iran’s No 1 European trade partner and its booming import-export with Iran will be a net casualty of any UN (or other) sanctions on Iran, compared with the United States, which has practically no economic interests at stake in Iran as a result of 27 years of US sanctions.
Iran is a major market for Germany’s industrial and technological products, just as Germany is an importer of Iranian oil and such goods as rugs; some 35% of Iranian rugs are exported to Germany. According to a recent article in Der Spiegel, “Between 2000 and 2005, German exports to Iran more than doubled. Last year they reached a new record of 4.4 billion euros [US$5.6 billion], or 0.6% of Germany’s total export volume. Manufacturers of machinery and equipment are the main beneficiaries because Iran is using German know-how to develop its economy.”
Another report by the Iran-German Chamber of Commerce indicates that as much as 75% of Iran’s small and medium industries rely on imported goods and technology from Germany. German companies and banks are also involved in projects in Iran’s industrial free zones. [/quote]
atimes.com/atimes/Middle_East/HE27Ak01.html
and here is how Germany uses sticks against Iran. Given that the leadership of Germany is convinced that sanctions would be the most effective method of getting the mullahs to change their behavior, one is left very confused as to how and why they are so actively subverting their own stated goals by financing and trading with the mullahs.
Read on…
[quote]An article by Nikolas Busse in yesterday’s (10 May) Frankfurter Allgemeine Zeitung points out that commercial sanctions against Iran could prove highly effective – on the condition, that is, that the EU countries and, in particular, Germany cooperate. The United States, of course, already prohibits trade with Iran. But will the EU states cooperate? An extract:
More comprehensive sanctions [i.e. including commercial sanctions] would be tied to ever higher costs also for the West – and, in particular, for Germany. Should commercial sanctions be applied, it would be first and foremost the EU states that are affected. In 2004, Germany was the most important supplier of Iran (12.3% of all imports), followed by France (8.5%), Italy (7.9%), and China (7.5%). Due to its long-term cooperation with Europe and a lack of local know-how, Iran is particularly dependent upon imports in the automobile and machine-building industries and the oil and gas sectors. As consequence, Iran could be highly susceptible to sanctions.
Nikolas Busse ends his article by alluding to what he calls a “well-known and fundamental problem with sanctions”:
The fewer the states that participate, the more ineffective they are. A “Coalition of the Willing”, of which one is yet again talking in Washington in reference to Iran, could only work if Iran’s most important trading partners participate – above all, the EU.
Current German policy in fact actively encourages exports to Iran: notably by having the German state assume the financial risks of German firms exporting to Iran (via the so-called “Hermes” program of export credit guarantees). [/quote]
trans-int.com/blog/archives/ … U-and.html
and
[quote]If there is a western nation today that has the means to confront such madness with effective sanctions, it is Germany. For the last 25 years, the German government has offered its good offices to the anti-Semitic Mullahs in Tehran with a shamelessness unrivalled by any other western government. In 1984, Hans-Dietrich Genscher was the first western Foreign Minister to pay his respects to the Mullah regime. Ten years later, Germany’s federal intelligence service, the Bundesnachrichtendienst (BND), trained Iranian intelligence agents in Munich. (See Arthur Heinrich, “Zur Kritik des ‘kritischen Dialogs’”, Blätter für deutsche und internationale Politik, May 1996.) And whereas since 1995 American firms are prohibited from trading with Iran, Germany will, in the words of Werner Schoeltzke of the German Near and Middle East Association, , “remain the preferred technology partner of Iran also in the years to come” (Frankfurter Allgemeine Zeitung, 5 December 2003).
Germany is today by far the most important supplier of goods to Iran and its exports are increasing at a steady 20% per year. In 2004, German exports to Iran were worth some €3.6 billion. At the same time, Germany is the most important purchaser of Iranian goods apart from oil and Iran’s most important creditor.
Since, however, Ahmadinejad provided the world with such a stark reminder of the ideological foundations of the Mullah-dictatorship – Holocaust denial, anti-Semitism, and the destruction of Israel – Berlin is in a tight spot. On the one hand, Berlin would not like to put in danger Germany’s special relationship with Tehran. On the other hand, it does not look particularly good when the country from which came the Holocaust practitioners now collaborates with the regime of the Holocaust deniers. On 11 December, Germany’s new deputy Chancellor, Franz Müntefering of the SPD, indicated the way out of this dilemma: “Berlin Demands a ‘Reaction’ to Ahmadinejad” ran the headline in the following day’s edition of the Frankfurter Allgemeine Zeitung (12 December 2005). This sounded surprisingly forceful. But whoever read the small type quickly understood the actual meaning of the headline: “ Berlin demands a ‘reaction’ to Ahmadinejad from everyone else”. The deputy Chancellor was cited as follows: “We cannot do it alone. Rather this has to be frankly discussed in the framework of the European Community and it must in the clearest possible terms be discussed in the framework of the United Nations”.
Excuse me? Germany can do nothing on its own? Only the German government can abrogate the 2002 investment agreement between German and Iran. Only Berlin can terminate the “Hermes” export credit guarantees that offer Iran advantages beyond almost any other country. As a consequence of the “Hermes” guarantees, the German state takes over all the specific risks connected with exports to Iran. Already in 1992, exports to Iran enjoyed the second highest level of Hermes guarantees after only Russia, and since then their scope has been continually increased. To bring an end to the privileges that the Mullah-dictatorship thus enjoys is entirely possible, though evidently politically unwanted. Müntefering’s uncompromising rhetoric is just the musical accompaniment to “business as usual”. Thus whereas the German government speaks impressively at the EU summit of sending “a clear signal of the sharpest possible disapproval”, in the Bundestag it speaks sheepishly “of avoiding the isolation [of Iran]”.
And what of Germany’s “Left” opposition? Should we not assume that privileging the most elementary human rights over the interests of the big corporations would be a special concern of the “Greens” or the “the Left” alliance? Far from it. Apart from some few exceptions, the “Left” has not been prepared to allow the Holocaust denier from Tehran to deprive it of its conspiracy theories and rage against “BuSharon”. “If the Iranian President Ahmadinejad did not exist,” writes, for example, the Berlin-based “Green” daily Die Tageszeitung (taz), “the USA and Israel would have had to invent him” (15 December 2005). Ahmadinejad’s words are only to be taken seriously inasmuch as they “provide a welcome pretext for the USA and Israel.”
Thus, on 16 December 2005, all the parties represented in the German Bundestag united to pass a resolution – including not a single word about the German-Iranian special relationship – applauding the Müntefering line: “The German Bundestag welcomes that the German government has stood up to the remarks of the Iranian President.” Yes indeed: Bravo and many more such successes! Given the obvious solicitude for the requirements of German industry, it would not surprise me if Ahmadinejad ordered his next batch of plastic keys for his Basiji from Germany. But will 500,000 keys to paradise be enough for the war against Israel? [/quote]
trans-int.com/blog/archives/ … rmany.html
and then there is this…
[quote]Europe and the Mullahs
How the EU subsidizes trade with Iran.
Tuesday, February 20, 2007 12:01 a.m. EST
On the record, Europe claims to be as concerned as America about a nuclear-armed Iran. The record also shows, however, that Europe’s biggest countries do a booming business with the Islamic Republic. And so far for the Continentals, manna trumps security.
The European Union–led by Germany, France and Italy–has long been Iran’s largest trading partner. Its share of Iran’s total imports is about 35%. Even more notable: Its trade with Tehran has expanded since Iran’s secret nuclear program was exposed. Between 2003 and 2005, Europe’s exports rose 29% to €12.9 billion; machinery, transport equipment and chemicals make up the bulk of the sales. Imports from Iran, predominantly oil, increased 62% to €11.4 billion in that period.
In the absence of an official embargo against Tehran, private EU companies have sought commercial opportunities in Iran. But the real story here is that these businesses are subsidized by European taxpayers. Government-backed export guarantees have fueled the expansion in trade. That, in turn, has boosted Iran’s economy and–indirectly by filling government coffers with revenues–its nuclear program. The German record stands out. In its 2004 annual report on export guarantees, Berlin’s Economics Ministry dedicated a special section to Iran that captures its giddy excitement about business with Tehran.
“Federal Government export credit guarantees played a crucial role for German exports to Iran; the volume of coverage of Iranian buyers rose by a factor of almost 3.5 to some €2.3 billion compared to the previous year,” the report said. “The Federal Government thus insured something like 65% of total German exports to the country. Iran lies second in the league of countries with the highest coverage in 2004, hot on the heels of China.”
Iran tops Germany’s list of countries with the largest outstanding export guarantees, totaling €5.5 billion. France’s export guarantees to Iran amount to about €1 billion. Italy’s come to €4.5 billion, accounting for 20% of Rome’s overall guarantee portfolio. Little Austria had, at the end of 2005, €800 million of its exports to Iran covered by guarantees.
The Europeans aren’t simply facilitating business between private companies. The vast majority of Iranian industry is state-controlled, while even private companies have been known to act as fronts for the country’s nuclear program. EU taxpayers underwrite trade and investment that would otherwise be deterred by the risks of doing business with a rogue regime.
It’s also hard not to see a connection between Europe’s commercial interests and its lenient diplomacy. The U.N.'s December sanctions resolution orders countries to freeze the assets of only 10 specific companies and 12 individuals with ties to Iran’s nuclear program. Europe’s governments continue to resist U.S. calls for financial sanctions, and the German Chamber of Commerce recently estimated that tougher economic sanctions would cost 10,000 German jobs.
As if on cue, Foreign Minister Frank-Walter Steinmeier last week detected in Tehran a “new ambition” to resume talks. The last time the Europeans promoted such diplomatic negotiations, Iran won two more years to get closer to its goal of becoming a nuclear power.
In 2004, according to the Frankfurter Allgemeine Zeitung daily, then-Foreign Minister Joschka Fischer told Iranians to consider Europe a “protective shield” against U.S. pressure.
The EU continues to provide a shield for its business interests in Iran, and thus a lifeline to a regime that is unpopular at home and sponsors terror abroad. [/quote]
opinionjournal.com/editorial … =110009689
I just love Fischer don’t you? hahahahahahahahaahah