WASHINGTON/BRUSSELS—“Foreign aid from European taxpayers perpetuates the regime’s ability to neglect the needs of its people and stifles meaningful policy changes,” said Brian Hook, the US special representative for Iran, in a statement over the European Union decision to adopt a financial aid package of €18 million ($20.7 million) for Iran.
The European Commission announced last Thursday that ‘’it has adopted a first package of €18 million for projects in support of sustainable economic and social development in the Islamic Republic of Iran, including €8 million assistance to the private sector.’’
‘’Today’s projects are the first of a wider package of €50 million for Iran, aiming to support the country to address key economic and social challenges. They are part of the renewed cooperation and engagement between the European Union and Iran following the conclusion of the Joint Comprehensive Plan of Action (JCPOA),’’ reads the EU Commission statement.
EU’s foreign policy chief, Federica Mogherini, who is a staunch defender of the nuclear deal with Tehran, declared : “Since the renewal of the EU-Iran relations as a result of the Iran nuclear deal, cooperation has developed in many sectors. We are committed to sustain it and this new package will widen economic and sectoral relations in areas that are of direct benefit to our citizens”.
But according to Brian Hook, the EU aid package for Iran, the EU decision to grant an aid package to Tehran ‘’sends the wrong message at the wrong time.”
“The Iranian people face very real economic pressures caused by their government’s corruption, mismanagement, and deep investment in terrorism and foreign conflicts,” he added. “The United States and the European Union should be working together instead to find lasting solutions that truly support Iran’s people and end the regime’s threats to regional and global stability.”
The EU decision was aimed at offsetting the impact of US sanctions as European countries try to salvage the 2015 nuclear agreement. In May, US President Donald Trump withdrew from the deal, and began restoring US sanctions. The move has exacerbated a financial crisis in Iran that has sent its currency tumbling.
US National Security Adviser John Bolton said last week during a visit to Israel that the return of US sanctions was having a strong effect on Iran’s economy and popular opinion.
The US sanctions targeted Iran’s car industry, trade in gold and other precious metals, and purchases of US dollars crucial to international financing and investment and trade relations. Farther-reaching sanctions are to follow in November on Iran’s banking sector and oil exports.
Two major European airlines have announced they will stop conducting business in Iran. British Airways and Air France said they will no longer be offering flights to Tehran in September. “We are suspending our London to Tehran service as the operation is currently not commercially viable,” the airline said in a statement.
While the carriers did not cite the US sanctions as the reason for their decision, Washington has been pressuring European companies to avoid doing business in Iran or risk getting caught up in U.S. sanctions.
On Friday, as he attended a Baltic Summit in Vilnius, Israeli Prime Minister Benjamin Netanyahu slammed the European Union’s financial support package for Iran as a “big mistake” and said it was like a “poison pill” for the Iranian people.
“I think that the decision yesterday by the EU to give 18 million euros to Iran is a big mistake. It’s like a poison pill to the Iranian people and to the efforts to curb Iranian aggression in the region and beyond the region.’’
“Iran attempted to conduct a terror attack on European soil just weeks ago… That is incredible,” he told a press conference following a meeting with three Baltic Prime Ministers — Lithuanian Saulius Skvernelis, Estonia’s Juri Ratas and Maris Kucinskis of Latvia.
The Israeli premier was apparently referring to a suspected bomb plot against an Iranian opposition rally in France in late June that was thwarted by authorities. An Iranian diplomat is suspected of involvement.
“Giving money to this regime, especially at this time, is a big mistake and it must be stopped. The regime isn’t going to use it to solve their water problems, it’s not going to help an Iranian truck driver,” he said.
“After all, where is their money going? For missiles, and to the Revolutionary Guard. All countries need to act together to renew sanctions on Iran,” he said.
Lithuanian Prime Minister Saulius Skvernelis said his country backs the EU position on a two-state solution to the Palestinian conflict, the status of Jerusalem and the Iran nuclear deal, but wants more direct dialogue between the EU and Israel.
“We want the discussion to happen as it would help to seek compromise on complicated international issues,” he said.
In an interview with the Baltic News Service, he declared : “I believe Lithuania really has a better understanding of Israel and that understanding could be spread among other EU countries. ”