EU cold-shoulders US’ Iran plan

A US plan to isolate Iran by introducing fresh economic sanctions has met a muted response in the EU, amid fears it could strengthen the regime’s hard-liners.

Washington is pressing EU countries to increase pressure by scrapping export credits granted to European firms doing business with Iran.

The sanctions would go beyond those endorsed by the United Nations’ Security Council in December, which prohibited exports and imports linked to Iran’s nuclear programme.

Two EU member states, Germany and Italy, are deeply sceptical about the US move, fearing it comes too soon after the adoption of the UN resolution.

But with France and the UK less reluctant to impose additional sanctions, the issue will be discussed when EU foreign ministers meet in Brussels on 22 January.

In December, the Security Council gave Iran 60 days to stop uranium enrichment - which is part of a suspected nuclear weapons programme - or face sanctions.

The European Commission is still drawing up its recommendations on how the UN measures will be implemented across the EU, but the Commission and member states look set to come under pressure from Washington to take the hardest possible line.

Although EU measures may go beyond the Security Council resolutions - ignoring exemptions made for Iran’s Russian-built reactor at Bushehr - they are unlikely to meet US demands.

Diplomats said Washington wants to warn Iran that it will face international isolation if nuclear enrichment does not stop and to convince Iran of the international community’s resolve.

But critics of US policy said it could silence members of the regime who oppose President Mahmoud Ahmadinejad’s hard-line stance on the nuclear programme. They point to increasing vocal calls from supporters of former president Akbar Hashemi Rafsanjani for the regime to take a softer line.

Diplomats in Brussels said that changing Iran’s behaviour should be the EU’s focus and that the Union should be careful it does not kill the domestic debate in Iran.

There are also concerns that the US’ latest diplomatic drive could split the international community. During discussions on the UN resolution China and Russia fought to keep sanctions as narrow as possible.

But the US appears determined to press ahead. It has already sanctioned Iran’s Sepah Bank, which has offices in Frankfurt, London, Paris and Rome. The Bush administration accuses the bank of making acquisitions linked to Iran’s ballistic missile programme.

A US plan to isolate Iran by introducing fresh economic sanctions has met a muted response in the EU, amid fears it could strengthen the regime’s hard-liners.