The historic deal between Iran and world powers reportedly reached on July 14 in Vienna has paved the way for international sanctions against Tehran to be lifted in exchange for limits on its nuclear activities. While the six powers have said the deal will slow Tehran’s ability to acquire a nuclear weapon, the accord could also have other far-reaching ramifications linked to Iran’s possible reintegration into the global community.

From potentially stoking a Middle East arms race, to enabling political reforms in Iran, to undercutting Russia’s energy might by freeing up massive oil and gas supplies, here are some possible implications of the agreement.

‘Destabilizing’ Factor?

The prospect of a prospering Iran has sparked concern among skeptics of the nuclear deal — and even some U.S. officials who back it — that Tehran could use this financial windfall to destabilize the already volatile Middle East.Sanctions relief could allow Iran to repatriate more than $100 billion in oil revenues currently frozen overseas , and some experts estimate that sanctions relief could help Iran’s $420 billion economy grow by 5 percent to 8 percent annually.

“We are, of course, aware and concerned that, despite the massive domestic spending needs facing Iran, some of the resulting sanctions relief could be used by Iran to fund destabilizing actions,” The Daily Beast quoted a U.S. State Department official as saying in a July 8 report. 

However, Mohsen Milani, the executive director of the Center for Strategic & Diplomatic Studies at the University of South Florida, told RFE/RL that the deal could be a “transformative event” in the Middle East because it opens the door to better ties between Iran and the West, which could reduce tension in the region.

Richard Nephew, who served as the State Department’s principal deputy coordinator for sanctions policy and as director for Iran at the National Security Council, argues that fears that Iran will use money from sanctions relief to bankroll its regional ambitions are overblown.

“Iran’s domestic economic needs are real, as is [President Hassan Rohani’s] imperative to deliver on the promises that got him elected,” Nephew wrote earlier this month. “To ensure the stability of their government, Iran’s leaders must tend to the problems at home and make the investments necessary to sustain their future. Supporting Syrian President Bashar al-Assad and other regional actors is an important, but secondary, objective.” 

Shifting Alliances

The U.S. push for the nuclear deal with Iran has also raised fears among Sunni-dominated Arab states that Washington, their traditional guarantor, is essentially stepping back to allow Shi’ite Iran free rein in the region. Amid these concerns, Gulf Arab states are increasingly talking about diversifying their international alliances.

“[U.S. President Barack] Obama is going to be remembered as the U.S. president who restored relations with Iran. But he may also be remembered as the U.S. president who lost his traditional allies in the region,” Sami al-Faraj, a Kuwaiti security adviser to the Gulf Cooperation Council (GCC), told Reuters in June. Read more…

Written by By Carl Schreck and Golnaz Esfandiari

Published on July 14th in http://www.rferl.org/


You’d be forgiven for thinking that Iran, unshackled from economic sanctions, would have free rein to domineer its vulnerable Persian Gulf Arab neighbors and cause trouble for Israel. As the fearful refrain goes, if an Iran restrained by crippling sanctions has managed to assert its influence over four Arab capitals — those of Iraq, Lebanon, Syria, and Yemen — what will an Iran freed from sanctions and a global arms embargo do? As noted Iran hawk Ray Takeyh recently wrote, “the most important legacy of the prospective agreement [may be that it] enable[d] the Islamic Republic’s imperial surge.” This same line has been pushed so hard that it has become accepted fact in Washington.

The problem is, the line isn’t true. But, nonetheless, it is threatening to upend a lasting nuclear deal with Iran.

As the nuclear talks between Iran and the P5+1 countries head down to the wire in Vienna, the issue has arisen in the question of whether the arms embargo imposed on Iran as part of the U.N. Security Council resolutions would be maintained following a nuclear deal. The United States and its European partners say yes; Russia, China, and Iran say no.

The timing is troubling to say the least. Just as solutions have been found to constrain and roll back elements of Iran’s nuclear program, this issue — one that’s outside the scope of the nuclear talks — is now taking on such exaggerated importance that it threatens to undo the serious progress of the past 18 months. Having performed so well at insulating the nuclear talks from outside complications, U.S. and Iranian negotiators have nearly reached agreement only to come to a standstill over this regional dimension. Of course, no one imagined back in 2010 that a conventional arms embargo — part of what was otherwise a U.N. Security Council resolution focused squarely on Iran’s nuclear-proliferation activities — would rear its ugly head in quite this manner.

The Russian and Iranian position is that the Security Council resolutions rested on the understanding that the arms embargo would be lifted once concerns regarding Iran’s nuclear program were resolved. Provided that a deal is reached on Iran’s nuclear program, Russia and Iran thus argue, the arms embargo loses its legal justification. The current U.S. position, however, may be less interested in maintaining coherence with past policy than it is with ensuring that it mitigates regional allies’ concern as much as possible as part of a nuclear deal with Iran. Understandably, U.S. President Barack Obama’s administration fears that undoing the arms embargo on Iran would be a step too far for some of the United States’ key regional allies, all of which — but particularly Saudi Arabia — threaten to undermine the administration’s case for a nuclear deal should they perceive their interests to dictate in favor of doing so. Read more…

Published on July 10th in http://foreignpolicy.com/

Trita Parsi is president of the National Iranian American Council and author of A Single Roll of the Dice: Obama’s Diplomacy With Iran.

Tyler Cullis is a legal fellow and policy associate at the National Iranian American Council.


 What Are the Geostrategic Implications of a Grexit?

At the the moment, it is unclear how Greece will ultimately fare in the current duel of wills with the Troika over its technical default, the upcoming referendum, and the possibility of a continuation of the long-running bailout drama. The two sides are locked in acrimonious finger-pointing, Greek banks are shuttered for the week, and the logical but ever elusive diplomatic and economic solution — a reasonable negotiation between the parties — seems further away than ever. As a proud Greek-American, I am saddened by the situation.

Meanwhile, the July 5 referendum is judged too close to call at the moment, and most Greeks will likely be confused about the implications and uncertain how to vote. Macroeconomic theory appears to have been the first casualty of the process, and the doomsday economic scenarios — a crashed Greek economy, a battered if not broken euro, and a deeply shaken European project — are looming large on the horizon.

But in the midst of all of the appropriate Sturm und Drang of the Greek financial and economic crisis, it is worth considering the geostrategic implications of the “Grexit” — which have been largely ignored.

Let’s face it: A Greece that goes crashing out of the eurozone will be an angry, disaffected, and battered nation — but one that will continue to hold membership in the European Union and NATO, both consensus-driven organizations. (“Consensus-driven” means that without unanimous consent among all members, the organization cannot take decisions or execute effective operational actions.) Many times in NATO councils as the supreme allied commander I watched the agonizing process of building consensus, one compromise at a time. In both the EU and NATO, an uncooperative Greece in the future could time and time again put the organizations “in irons,” which is to say becalmed and not moving effectively forward.

This could manifest itself very quickly in, for example, decisions about sanctions against Russia (from which Greece is avidly courting support and funding, logically enough). It could easily affect day-to-day governance in the European Union over issues from negotiating the Transatlantic Trade and Investment Partnership to agricultural subsidies to what should be done about refugee flows across the Mediterranean. Greece could become a troublesome and obstructionist actor in complex negotiations involving the EU, such as the Iranian nuclear treaty efforts.

 Read more…

James Stavridis is a retired four-star U.S. Navy admiral and NATO supreme allied commander who serves today as the dean of the Fletcher School of Law and Diplomacy at Tufts University. He recently gave a well attended seminar at the IE School of International Relations.


Published on 1 July, 2015 in http://foreignpolicy.com/


By Deniz Torcu, MIR 2014/2015 Current Student

The image that has started to go viral in social media amongst Greek users is simple, yet strong enough to explain the stand of the majority. It says a clear “NO”, however the rejection is composed of the sentence “YES TO THE EURO”.

My recent trip to Athens was a clear depiction of how devastated the country really is. The once busy neighbourhoods filled with restaurants, cafés and shops are now being replaced by two yellow signs that mark the desperation of the people: “for rent” and “for sale”, appearing side by side.

Yes, Greece owes billions of dollars. Yes, Greece cannot pay her debt to the IMF and has to redeem billions of bonds held by the ECB or run the risk of going into default.

These are the dry, non-human facts that we read in the news every day.

However, what we don’t get to read as much is the following: after the measures taken by the Greek governments over the past 5 years, the situation only got worse where the real GDP fell as much as 27%, unemployment rates broke a new record, pensions were cut by 48%, unofficial and non-registered labour started to make up as much as 34% of the entire labour force, and public debt kept growing finally reaching a level of nearly 180% of the GDP.

Do those developments seem as a healthy way to bring back an economy? Maybe to Angela Merkel and the German creditors who hold a majority of Greece’s debt, but definitely not to the Greek people.

Go to Greece, speak to ordinary people on the streets, the cafés, taxis, etc. You will hear stories like that of the taxi driver Antoni, who, despite having two degrees in hospital management, has to work in a rented taxi because the highest salary that he can get practicing his own profession doesn’t even reach 500 euros per month; he is thinking of migrating to Canada with his wife, even though he doesn’t want to leave Greece.

You will encounter the taverna owner Dimitri, who is concerned about the anti-Syriza propaganda that has been going strong from the creditors, pointing out to the fact that two extreme right-wing parties are already backing the government. There are fears that if Syriza is not given a proper chance to try to make things right, the fascist Golden Dawn would gain even more power.

Read more…

Published on 1 July, 2015 in  http://www.katoikos.eu/es/opinion

Deniz Torcu has a degree in Economics and previously worked for the Spanish governmental organization Instituto Cervantes and the Turkish National Commission for UNESCO. She currently studies International Relations at IE School of International Relations in Madrid as the Turkish scholar for 2014-2015.


IE Story: the new blog!

Written on June 30, 2015 by Waya Quiviger in News

IE STORYThe IE Story webpage provides a range of information on the history of IE since it first opened in 1973, including major milestones, the evolution of our master and executive education program portfolio, the growth in the number of students and nationalities on campus, and IE’s recognition of key players from the world of business and economy. The site also offers information on IE’s presence worldwide, a photo gallery, and comments from the people who have played a key role in IE’s development, looking back over 40 years of history and forward to the challenges that lay ahead. IE Story


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