The European Union is facing a tough call on whether to retaliate to a squeeze on European firms and their dealings with the Republic of Iran by the United States. When you refer to history, the European Union has very slim chances of prevailing against the United States. One of President Trump’s advisors on national security, John Bolton, last weekend issued a warning that economic sanctions by the United States could hit companies that operate in Europe. Bolton said that such an eventuality was very likely if the European firms refused to cut commercial and trade ties with the Republic of Iran. Trade analysts and European diplomats have alluded that the European Union that is composed of 28 member states can deploy some retaliatory sanctions to the United States.
These may include euro-dominated credit lines and a complaint to the World Trade organization to limit EU’s exposure to the financial curbs imposed by the United States. The stakes involved are higher than the European multinational’s fortunes from the modest but still growing commerce between the European Union and the Republic of Iran. One of the experts on Iran foreign policy at the Carnegie Europe think-tank, Cornelius Adebahr, said that the issue was far beyond Iran and the EU bloc’s member states. Adebahr said that the issue is about the transatlantic relationship and what it means for Europe and the US. On Tuesday, a meeting between the Iran Foreign Minister Mohammad Javad Zarif and the foreign envoys from the United Kingdom, France and Germany is set to table discussions on the way forward.
In the meeting, the three European superpowers are set to come up with a decision that will thrash out US actions on the Republic of Iran. The foreign envoys are set to hold an evening summit in the following night in Sofia. The threats issued by US President Donald Trump may jeopardize more than 20 billion euros of the annual Iran-EU trade. The threatened economic sanctions may also serve to threaten the big trade deals and contract for European companies including the French oil corporation Total and automaker Renault. More importantly, the economic embargo proposed by the US may threaten the economic benefits to Iran that are critical to the Iran nuclear deal signed by President Obama in 2015. Last week, French President Macron said that Europe would no longer live by decisions made by other and that European nations would determine their destiny.