The US decision to withdraw unilaterally from the Iran nuclear deal and pursue a “maximum pressure” campaign against Tehran is pushing Europe to find creative new ways to preserve economic relations with Iran and thus salvage the agreement.
One idea, floated by the French Economy Minister Bruno Le Maire, is the establishment of a European version of the US Treasury’s Office of Foreign Assets Control (OFAC). This EU-OFAC, Le Maire has said, would be “capable of following the activities of foreign companies and checking if they are respecting European decisions.”
As Esfandyar Batmanghelidj and I argue in a joint report, such an authority could assist the European Union in accomplishing two interlinked objectives: supporting the Joint Comprehensive Plan of Action (JCPOA) and promoting greater European economic sovereignty. Creating such a body would be a challenge, but one that European leaders should willingly assume.
In the aftermath of the US withdrawal, European governments and the EU have all reiterated full support of the JCPOA. European leaders understand that sustaining at least a minimum of economic ties with Iran is crucial to preserve the agreement, which they view as critical to nuclear non-proliferation and Europe’s other security concerns regarding the Middle East.