• Global geo-political series: Europe scrambles for contingency plans on Iran nuclear deal to save billions as U.S. withdrawal looms

    Source: FxWireCommentary / 13 Oct 2017 06:28:04   Eastern Standard Time

    The European bureaucrats are scrambling to come up with a contingency plan to save billions of dollars invested by the European companies in the region as it increasingly looking like the U.S. President Donald Trump will follow on his promise to decertify the Iran nuclear agreement reached between Iran and six world powers in 2015 under the Obama administration.

    If Trump refuses to certify the compliance of Iran with the agreement, the U.S. congress would have roughly two months to decide whether to re-impose sanctions on Iran. According to calculations made by Financial Times of almost $55 billion are at stake here, which has been invested by European companies like Airbus, Total, Siemens, and Peugeot in the region. According to the agreement, a sitting U.S. President needs to certify the compliance agreement regularly. Trump has until October 15th to certify the agreement.

    The options for Europe for a contingency plan is limited. The best-suited option is to limit or block legislation related to re-imposition of sanctions by the United States but that would be complicated way given the international reach of the U.S. laws on financial transactions.

    The decision could come as early as today.