The European Union Takes Steps to Strengthen the Economy of the Islamic Republic

The European Union is taking steps to strengthen the economy of the Islamic Republic. The Bush administration states that the recent move by the European Union to establish closer relations with Iran should be conditional on changes in Tehran's behavior. Richard Boucher, spokesperson for the U.S. State Department, has said that any economic incentives the European Union considers for Iran must be tied to reforms in Iranian policy. The spokesperson referenced several examples of Iran's current behavior, including support for international terrorism and obstruction of the Middle East peace process, stating that Iran is striving to acquire weapons of mass destruction and has a poor human rights record. On Monday, the foreign ministers of the European Union granted the European Commission, which acts as the executive arm of the Union, permission to open trade dialogue with Iran, considering legal standards. European officials express hope that closer relations between the European Union and Iran can strengthen moderate elements within the country against the influential hardline clerics. The U.S. government has noted that maintaining sanctions against investing companies in certain sectors of the Iranian economy, including oil and gas, may likely pose challenges for European companies.