Following the conclusion of the nuclear deal between Iran and great powers, the European Union countries, Germany in particular, are fostering their economic cooperation with Tehran.
For decades before sanctions were imposed, Berlin was Tehran's biggest trading partner. The gap in Iranian imports from Germany and other Western countries was subsequently filled by Chinese, Korean and Middle Eastern competitors, and now thanks to the removal of nuclear-related sanctions against Iran, economic ties between Tehran and Berlin have been improved.
As per the latest German government data, German exports to Iran, especially of machines and equipment, rose significantly in the first quarter of the 2016.
So far, several numbers of the European officials have voiced their readiness to continue supporting the implementation of agreement, officially known as the Joint Comprehensive Plan of Action throughout the lifetime of the agreement, as well as the UNSC Resolution 2231.
Thanks to being the safest and the most secure country in the region, Iran enjoys considerably high number of young population and educated people which make it a promising trading partner and market for foreign investments.
Without doubt, Iran is considered as an eye-catching and lucrative market for several European countries like Germany with not only 80 million people it has but also with 400 million people given its access to the 400 million-strong neighboring markets.
According to the International Monetary Fund, Germany enjoys the largest economy in Europe with a nominal gross domestic product in 2016 of $3.5 trillion.
Touching upon the economic growth rate in Iran, estimated at 5 percent this year, it would bring about positive prospect for the country to lure foreign investments.
Iran is an eye-catching and lucrative market for several European countries like Germany offering not only 80 million people it has but also a 400-million-people market it can provide access to.Iran-EU Economic Center in Germany
On May 2016, in an indication of warming economic relations between Iran and European countries, particularly Germany, Iran-EU center for economic cooperation was opened in Germany.
Iranian officials believe that the center can serve as a turning point in fostering Tehran-Berlin economic ties and would present the opportunity for a fresh round of cooperation between Iran and western countries, mainly Germany.
As long as, there is no political restriction for amending economic cooperation between the Iranian and European companies, the center could pave the ground for expansion of more economic relations.
Iranian Private Banks in Germany
On September 2016, Deutsche Welle reported that Iran's Middle East Bank and Sina Bank will open branches in the Bavarian city of Munich by the end of the year; Iran's central bank has dubbed it a development that could help boost German exports to the Islamic Republic.
Ilse Aigner, Bavaria's economy minister, told the Münchner Merkur newspaper that the new Iranian bank branches would help German businesses realize greater exports to Iran.
On May 2016, in an indication of warming economic relations between Iran and European countries Iran-EU center for economic cooperation was opened in Germany.Aigner said having branches of Iranian banks in Munich is particularly important for our businesses; especially our small and medium-sized firms have enormous export prospects to Iran that they will be able to utilize more easily in the future.
On May 2016, Iran awarded a major contract to the German company Abels Decker Kuhfuß Lenzen (ADKL) over the development of a petrochemical project in the country’s southwestern city of Masjed Soleyman an initial value of €2 billion which will be increased to as high as €10 billion in the future.
As per the contract, the ADKL will cooperate with Masjed Soleyman Petrochemical Industries Company over providing the funds, transferring the technology and implementing contracts for the project within the framework of engineering, procurement, construction and finance (EPCF).
While Germany is practically the propelling engine of European economy and enjoys the most stable economy in the green continent, it can now play the leading role in renovation of relationships between Iran and European countries. Although banking transactions are not freed completely due to US pressures and threats, economic negotiations have marked significant rise and many MoUs and contracts have been signed since the implementation of nuclear deal. Berlin must take this opportunity in its best way and pave the way for better economic ties between Iran and Germany as well as other European states.