The European Union on Thursday announced its first financial support package to help bolster Iran's flagging economy. The aid comes as part of the bloc's commitment to keep the 2015 Iran nuclear deal alive in the wake of U.S. President Donald Trump's May 8 decision to pull the U.S. out of the accord and reimpose economic sanctions on Iran.
The European Commission unveiled a first tranche of €18 million ($21 million), earmarking €8 million for the private sector, €8 million to cope with environmental problems and €2 million for drug abuse.
This is part of a wider, €50 million ($58 million) effort to help Iran cope with economic and social challenges.
EU Foreign Policy chief Federica Mogherini said in a statement the bloc is committed to cooperation with Iran.
"This new package will widen economic and sectoral relations in areas that are of direct benefit to our citizens," she said.
Despite this commitment, a number of European companies have announced they are pulling out of projects or scrapping investment plans in Iran.
Meanwhile, Republican lawmakers in the U.S. called for Iran to be expelled from the main financial system that oversees international bank transfers.
A group of 16 GOP senators led by Sen. Ted Cruz of Texas urged Treasury Secretary Stephen Mnuchin on Thursday to take "all necessary steps" to disconnect Iran from the SWIFT network, which allows financial institutions to send and receive information about banking transactions.
"Quick robust enforcement will be critical for the administration's maximum pressure strategy to succeed, both immediately to drain the Iranian regime's resources for malign behavior and as a signal of America's commitment to maintaining the integrity of our sanctions architecture," they wrote. "The administration's maximum pressure campaign will not succeed if the Islamic republic remains connected to SWIFT."
SWIFT is short for the Society for Worldwide Interbank Financial Telecommunication. It is based in Belgium, but its board includes executives from U.S. banks and federal law gives the administration authority to act against Iran's central bank and other banks covered by terrorism and money laundering sanctions.
The letter was sent a day after Germany's foreign minister called for Europe to create a banking payments system independent of the United States, in another effort to maintain the nuclear agreement with the Islamic republic.
Heiko Maas' suggestion was part of a wider-ranging piece in the daily Handelsblatt on Germany's future strategy toward the U.S. He said he envisions Europe taking a "balanced share of responsibility" and being "a counterbalance when the U.S. crosses red lines."
"In this situation, it is of strategic significance that we say clearly to Washington: We want to work together, but we will not allow you to act over our heads to our detriment," Maas wrote.
"That is why it was right to legally protect European companies from sanctions. That is why it is indispensable to strengthen European autonomy by setting up payment channels that are independent of the U.S., creating a European monetary fund and setting up an independent SWIFT system."
