DS reports on energy measures being considered:
The proposals aren't just aimed at expanding existing sanctions such as trade embargos for military and nuclear products and travel bans for Tehran's bomb builders. For the first time, the EU is envisaging a program that targets the entire Iranian economy. In order to maximize the impact, the experts are recommending measures to hit the energy and financial sectors, where the regime is particularly vulnerable, the document says.
Financial measures are under review:
The EU planners regard financial sanctions as even more effective, and have come up with an array of options. The EU could, for example, obstruct Tehran's access to Iranian currency reserves located abroad. And one could banish the Iranian central bank from the international circulation of money and credit. Cross-border money transfers would be made virtually impossible and Iran would have huge problems paying for imports -- that would hurt the supply of products needed for its nuclear program.
A further proposal: if Western insurance companies stop guaranteeing investments in Iran, many investors will prefer to withdraw. If Europe blocks export credit guarantees that are a routine part of interrnational trade, deliveries to Iran would be more risky or at least significantly more expensive. The EU plan also suggests limiting diplomatic and other official contacts with Iran, a move that would be primarily symbolic but significant just the same, it says.
The 27 EU members haven't decided on sanctions yet. But European governments are more determined than ever to raise the pressure on Iran, especially after the IAEA said in a report last week that Iran may now be working to develop a nuclear-armed missile.
Bottom Line. The EU is--finally, but quite possibly too late--waking up on Iran.
Letter from the Capitol, LFTC, National Security, Terrorism, Homeland Security, Nuclear Proliferation, Arms Control, WMD, Foreign Policy
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