Europe
EU sets in motion special mechanism against US sanctions

According to French Foreign Minister Jean-Yves Le Drian, the EU’s updated Blocking Statute mechanism of maintaining financial, economic and trade relations with Iran, aimed at mitigating the impact of Washington’s sanctions on EU companies doing business with Tehran, will take effect within the next few days.
However, the French minister stood corrected by Reuters, which said that the EU mechanism would only be launched the next few days and could take several months to start working in earnest as many details still remain to be agreed.
The Special Purpose Vehicle (SPV) is part of EU efforts to protect and keep in place the Joint Comprehensive Plan of Action (JCPOA), commonly known as the nuclear deal with Iran.
On July 14, 2015, Iran and six countries (Russia, China, Britain, France, Germany and the United States, with the active participation of the EU) adopted the JCPOA as a way of resolving the Iranian nuclear problem, which had been a source of concern for the international community, above all the IAEA. This truly historic document brought Iran’s nuclear program in line with IAEA requirements and significantly reduced Tehran’s ability to build nuclear weapons.
Resolution 2231, unanimously approved by the UN Security Council on July 20, gave the JCPOA the status of international law.
The JCPOA and the UN Security Council resolution envisaged a reduction in Iran’s nuclear potential and a slowdown in its development rates within the next 10 to 15 years. It also provided for a gradual lifting of the financial and economic sanctions imposed on Iran over its nuclear program, thus setting in motion a process of peaceful and civilized implementation of the nuclear nonproliferation regime.
However, the new US President Donald Trump started lashing out against the JCPOA in 2016, while still on the campaign trail. As a result, in 2018 he withdrew the US from the compromise nuclear deal and slapped tough unilateral sanctions on the Islamic Republic. What is more, “secondary” US sanctions targeted also foreign companies that would dare to keep doing business with Iran.
Iran, meanwhile, had given no reason whatsoever to doubt its meticulous implementation of the terms of the JCPOA accord. Since January 2016, the IAEA has verified Iran’s compliance with the JCPOA 13 times, with the UN nuclear watchdog’s Secretary General repeatedly confirming Tehran’s compliance with the agreement. Moreover, since the US withdrawal from the JCPOA, Iran has been intensifying its cooperation with the IAEA in a clear bid not to give Washington any pretext to blame it all down on Tehran, which has allowed no technical violations of the JCPOA and has consistently implemented its provisions.
All the signatories to the 2015 nuclear accord with Iran, including the European Union (and excluding the US), protested Washington’s decision to exit the JCPOA and have been working hard to keep it in place, even without the US.
As part of this effort, Iran was persuaded to continue to abide by the terms of the nuclear pact, even despite US sanctions, as it wants to avoid confrontation and maintain normal economic relations with the EU and other countries, and is not yet ready to exit the 2015 nuclear accord.
In August 2018, the EU reactivated the “blocking statute” that prohibits European companies from complying with US sanctions on Iran and implementing any decisions by foreign courts based on these sanctions thus nullifying their effect. The “blocking statute” also allows all European organizations to take legal action to recover damages arising from US extraterritorial sanctions from the persons who caused these damages to happen (meaning the US government).
This measure has proved less effective than expected though, since state authorities in countries with market economies cannot force private companies to challenge the global supremacy of the US dollar or dictate conditions in the global market, including the financial one, dominated by the United States. Therefore, it became clear that the situation necessitated the creation of a special mechanism for doing business with Iran bypassing “primary” and “secondary” US sanctions with the help of an alternative payment channel to facilitate trade with Tehran – essentially a separate European SWIFT system with payments made in euros.
Much will depend on the effectiveness of this mechanism, to be shortly registered in France, and which is at the core of the EU’s efforts to keep the JCPOA in place. This means that the anti-American body will very likely be headquartered in France and headed by a German citizen with France, Germany and Britain acting as shareholders.
Even though the Special Purpose Vehicle (SPV), which offers sophisticated compensation services for exports to and imports from Iran, has not been devised with humanitarian activities in mind, EU officials still expect it to initially be used for food and medicine supplies until the system is firmly in place and working smoothly.
Meanwhile, Tehran believes that the SPV should go beyond covering only drugs and food, and also include a wide range of transactions, as well as economic and industrial cooperation, and even investments. Future will show whether this can be done though. According to some experts, the SPV is just a sort of a barter option without attracting direct cash payments, and will only serve small-scale transactions. French Foreign Minister Le Drian believes, however, that within the framework of the SPV Iran will be able to “benefit from some of its oil sources and at the same time buy essential products from the three main [European] partners,” (namely France, Germany and Britain).
The key question is how the US will respond. Will it be able to sidetrack this mechanism too?
Experts say, meanwhile, that the SPV is certainly not a magic wand but rather a complex, multi-layered financial and economic system. Moreover, its completely transparent market mechanism of maintaining business ties with Iran makes it vulnerable to potential attacks by Washington.
One encouraging factor here is that Switzerland, which is not an EU member, strongly believes that the JCPOA should remain in place and is now establishing its own interbank financial channel (independent of the EU) that would make it possible to bypass the SWIFT system in settlements with Iran and circumvent the US sanctions against Tehran.
Sharif Nezam-Mafi, Chairman of the Board of the Iran-Switzerland Chamber of Commerce, said that financial exchanges between the two countries will be carried out by the Swiss bank BSP, which prior to the introduction of anti-Iranian sanctions executed currency transfers from Iran to Switzerland.
Moreover, some of the proceeds from Iranian oil sales will be kept in this Swiss bank.
The launch of the SPV ushers in possibly the most crucial period in the ongoing political tug-of-war for preserving the JCPOA accord. If successful, it could help ease tensions in and around Iran and create a precedent in the future attempts to challenge the US financial domination and its aggressive policy of using economic sanctions against other countries.
If not, this could lead to Iran’s withdrawal from the JCPOA and the resumption of its nuclear program which, in turn, would further ratchet up tensions around the Islamic Republic.
Let us hope that the latter scenario never comes true.
First published in our partner International Affairs
Europe
Austerity, corruption, and neglect: How the Greek railway became Europe’s deadliest

“Aren’t trains supposed to be safe?” This was the question on the minds of most Greeks after the fatal collision between a passenger and a freight train that took place on February 28th in the Tempi area of Central Greece. The crash cost the lives of 57 people, mostly young students returning home after the Clean Monday holiday. As it turned out, the trains in Greece were not safe at all. In fact, according to a 2022 report by the European Union Agency for Railways, Greece had the deadliest railway among 29 European nations even before the Tempi catastrophe.
The official inquiry into the disaster concluded that the station master had committed a series of critical errors that night; however it also highlighted that there were no safety systems in place to prevent or correct human errors. In the days following the catastrophe, the phrase “a serious accident was waiting to happen” was used many times by those working at the Greek railway.
Thanasis, 22, a driver for Hellenic Train, had the same opinion. Despite its name, Hellenic Train is a subsidiary of Trenitalia and is responsible for the operation of passenger and freight trains on the Greek railway lines. The state-owned Hellenic Railways Organization (OSE) is responsible for running and maintaining the lines as well as the accompanying infrastructure and systems (signals, stations, etc.).
That fateful night, Thanasis drove the IC62 passenger train from Athens up to Larisa, one station before the disaster. There, he changed shifts with his colleagues, who had to drive the IC62 to Thessaloniki. Approximately one hour later, they died from the collision. Thanasis learned about the accident on his way back to Athens.
“Shortly before we reached Thiva, we learned that something had happened because they called us from the Rentis train depot to ask if we were OK. At first, we did not give it much thought because we were told it was a derailment and derailments happen a lot. Afterwards, we learned that it was a head-on collision and that there were deaths. Shortly before we arrived in Athens, we began to see the first photos and videos [from the place of the accident],”he said.
According to the inquiry report, the absence of the European Train Control System (ETCS) played a central role in the disaster. ETCS is being used by the majority of European countries and it would have automatically stopped both trains after they entered a collision course. ETCS was installed gradually on Greek train engines from 2007 to 2018, but in order for it to be operational, the railway signals on the lines need to work.
However, copper thieves have been stealing cables from the railway lines for years. The theft and selling of copper are predominately dominated by criminal gangs called the “copper mafia”, but in some instances OSE employees have also been implicated. In 2017, a high-ranking OSE director and seven other employees were arrested after they were found to have taken tens of thousands of euros in bribes from these gangs. Due to its limited budget, OSE does not replace the stolen and damaged cables; as a result, the signaling system that is essential for the operation of ETCS is constantly out of order. The lack of signaling has resulted in the Greek railway relying on an obsolete system of station masters. This leaves no margin for human error, especially when all the traffic takes place on a single line, as was the case on the night of the Tempi disaster.
Another railway driver, who spoke on the condition of anonymity due to fear of reprisals, described how vulnerable the Greek railway system really is to criminal organizations taking advantage of it.
“There are extensive copper wire thefts. Even a few days after the accident, wires for the signaling system were installed in Katerini; they were stolen the same night, a few hours after installation. There is a serious problem. The system started to gradually get out of order,” he said. The driver also spoke of human smuggling rings active on the railway.
During the last few years, the Greek railway system has become one of the main means of transport used by migrants and refugees attempting to reach Western Europe. This has attracted human smugglers, creating a dangerous environment for workers and migrants. In August 2022, three migrants were killed in their sleep near Drama after they got hit by a train.
“There is a trafficking problem within the organization (OSE), migrants have inside information such as the train and route numbers, they know each train’s destination and they are prepared. People have come into the cab and offered me 2.000 euros to hide them inside. Obviously I refused because I would be arrested.” stated the driver.
“Migrants sometimes hide even beneath the trains, when we find out, we immediately stop the train and call OSE, but they often tell us “What do you want us to do?”. Even the police do not come. If it arrives, it is usually just one run-down police cruiser with one police officer inside. Sometimes a train may have 90–100 people (migrants) on it,” he added.
Although copper theft and human smuggling are significant issues, the primary factor responsible for the decline of Greek railway is the severe budget cuts that have been implemented on OSE since 2010 as part of wider austerity policies. As a result, OSE gradually became underfunded and understaffed. It is telling that OSE went from employing around 6.000 people in 2010 to less than 1.000 people in 2021. This has led to many stations being left unmanned, while OSE employees sometimes have to work long hours, which makes them more prone to mistakes. Furthermore, the lack of funds means that damaged equipment and infrastructure cannot be easily repaired or replaced.
To make matters worse, the political clientelism that has plagued the Greek public sector for decades has also been present in OSE, with inexperienced individuals being given important positions within the organization simply because of their political ties. According to several reports in the Greek press, the station master charged with causing the Tempi tragedy was a political appointee of the ruling New Democracy party. He had been given the job in 2022 after a few months of training, despite being 60 years old and lacking prior experience.
Moreover, OSE seems to be afflicted by a culture of silence. Every OSE employee we tried to contact refused to talk, with some of them implying their upper-ups had forbidden them to speak publicly. A couple of weeks after the accident, this culture became evident during the visit of the ex-deputy minister of transportation, Michalis Papadopoulos, to the Larisa station. Papadopoulos, while addressing the press, made some inaccurate remarks regarding the station’s control board. When a station master stepped in and corrected the deputy minister, making him visibly uncomfortable, a high-ranking OSE director intervened, tapped the station master on the shoulder and coldly told him, “End it.” The station master complied and stopped talking at once.
A few days after the disaster, Prime Minister Kyriakos Mitsotakis referred to it as a “sacrifice” that would help the state to prevent similar disasters in the future. However, if someone roamed the streets during the almost daily large demonstrations in the weeks following the Tempi catastrophe, the word that he would see mostly written on placards and banners was “murder.” This shows that a sizable part of society did not attribute the accident to the convenient explanation of human error but considered the Greek state responsible for the dreadful condition of the country’s infrastructure, including its railway system.
Following the catastrophe, the Mitsotakis government, which managed to secure reelection in June with an impressive 41% of the vote, increased the OSE’s annual funding from 45 million euros to 75 million euros and accelerated construction work, with the goal of having ETCS and signaling installed on the majority of the Athens-Thessaloniki line by November 2023.
Nevertheless, the disintegration of the Greek state’s capacity after 13 years of austerity makes it impossible to close one gap without opening another. In early September, catastrophic floods in Central Greece washed away the new constructions and destroyed a large part of the old railway infrastructure, once again highlighting the authorities’ lack of preparedness.
As a result, the work now has to start from scratch. “It will probably take us many months to return the railway to the point it was 15 days ago [before the floods],” admitted the newly appointed Infrastructure and Transport Minister, Christos Staikouras, in a recent interview. “The work [on the railway] will have been completed by 2026,” he concluded, attempting to reassure the citizens. However, a lot of them will probably be skeptical of the minister’s reassurances
Europe
Nurturing Sino-EU Ties through Multilateralism

Considering the fact that relations between China and the EU are shifting, they will continue since China’s position as a crucial economic powerhouse for the EU cannot be understated, especially as the EU confronts a real and technical economic downturn. In the Eurozone, countries such as the Czech Republic, Lithuania, and Germany are experiencing a deceleration in economic growth, which requires immediate consideration. The primary reason for this is the industry-related crisis caused by the collapse of export operations on both domestic and global markets due to a lack of purchasing power.
If this mild downturn becomes a full-blown crisis, the economies of both the European Union and the United States could stagnate. Because of these challenges, the European Union (EU) must strike a fine balance between resolving the current crisis and accommodating U.S. demands. The recent summit of European Union leaders holds great importance as the EU determined its policy towards China. The EU’s economic prospects are highly dependent on developing strong ties with China.
When combined with China’s growing consumer market and massive expenditures in infrastructure, the European Union’s economy has a once-in-a-generation chance to rebound and thrive. The European Union (EU) stands to gain from closer economic connections with China due to the opportunities it presents for increased collaboration, broader trade, and the infusion of much-needed Chinese investment into the EU’s flagging industrial sectors.
Recognizing this undeniable potential, the EU must priorities capitalizing on the benefits of its partnership with China, whilst likewise making sure that the relationship remains mutually beneficial and sustainable. The path towards achieving such equilibrium, however, is fraught with obstacles, mainly due to external pressures from the United States. Notably, the United States has imposed tariffs and trade restrictions on a number of European products, creating financial challenges for European companies. These actions are frequently used as pressure to influence Europe’s approach to China.
The EU is in a precarious position, compelled to navigate an environment where financial goals, geopolitical issues, and common values intersect. Maintaining a delicate equilibrium is essential. The pressure exerted by the United States highlights the necessity for Europe to assert its own interests and independence in international affairs. It is essential that the EU devise an independent and principled strategy that protects its own interests while approaching China with a productive discussion.
European Council President Charles Michel’s recent statement that it is in the EU’s best interest to maintain “stable and constructive” ties with China has, in a sense, confirmed the continuation of EU-China relations. In a latest commentary, Josep Borrell, the EU’s high representative for foreign affairs, pointed to how the EU could modify its policy towards China. However, he advocated for “vigorous engagement” between the EU and Beijing.
Under the weight of US pressure, maintaining a delicate balance in EU-China relations requires careful handling. European leaders will have the opportunity to define the EU’s position on China at the upcoming EU summit, ushering in a future of balanced, constructive, and mutually beneficial engagement. It is essential that European leaders seize this opportunity and set a course that protects their economic interests and fundamental values. In this manner, the EU can promote stability, resilience, and sustainable growth in the face of changing global dynamics.
At this critical juncture, leaders must engage in exhaustive dialogues that incorporate the many facets of the EU’s relationship with China. The promotion of human rights should be coupled with economic considerations. Considerations such as trade disparities, rights to intellectual property protection, and the development of equitable market practices must be addressed in an open discussion. This strategy will ensure an equitable playing field for EU and Chinese businesses, fostering an environment conducive to healthy competition and long-term economic growth.
The foundation of Sino-EU relations should base on mutual interest and respect, multilateralism, and economic exchanges, and they should be exempt from illicit US interference and pressures. By navigating these complexities and forging a path that safeguards economic interests and fundamental values, the EU can promote stability, resilience, and sustainable growth in the face of changing global dynamics.
Europe
China-Germany Win-Win Cooperation

The China-Germany cooperation exemplifies the transformative potential of collaboration based on mutual regard, shared objectives, and complementary strengths. This exceptional partnership has spawned a domino effect that extends beyond bilateral relations, inspiring other nations to pursue similarly mutually beneficial partnerships.
As the world becomes more interconnected, countries can learn from the China-Germany model of cooperation, which fosters economic development, technological advancement, environmental stewardship, and cultural exchange. By adhering to the principles of win-win cooperation, nations can construct a more prosperous, sustainable, and harmonious global community.
China and Germany’s dynamic and mutually beneficial cooperation is a shining example of win-win collaboration on the global stage. Both nations have nurtured strong economic and diplomatic ties over the years, resulting in enormous advances and benefits for their respective societies.
Strong and coordinated global action is needed immediately to combat climate change and advance sustainable development. There is still a lot to be done, but China and Germany have already shown their dedication to environmentally friendly and low-carbon development. By aligning their strategies and exchanging best practices, they can expedite the transition to a low-carbon, sustainable economy.
China’s pledge to peak carbon emissions before 2030 and achieve carbon neutrality before 2060 shows its commitment to a deep low-carbon transformation of its economy and society. Through the International Climate Initiative (IKI) administered by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, the German Federal Government supports Sino-German climate change cooperation.
Collaboration in areas such as energy efficiency, renewable energy, the circular economy, and sustainable transportation can lead the way for a greener future, mitigating the effects of climate change and nurturing ecological equilibrium.
China and Germany have established a strong economic partnership that has benefited both countries significantly. Germany’s main commercial partner is China, and vice versa, and this strong bilateral commerce has led to significant economic growth and employment creation. This collaboration has given German businesses access to the sizable Chinese market.
Notably, the exchange of products, services, and knowledge between the two nations has fostered innovation, productivity, and economic resiliency, thereby laying the groundwork for long-term cooperation. This commitment to cooperation has yielded an array of beneficial effects, strengthening the conviction that win-win partnerships can drive progress and prosperity in an interdependent world.
The dynamic economic partnership that has grown between the two nations is one of the pillars of China-Germany cooperation. Germany, known for its scientific prowess, inventiveness, and precision engineering, found a favourable market in China, with its enormous customer base and rapidly expanding economy.
On the other hand, China’s manufacturing expertise and devotion to infrastructure development have presented German businesses with incredible possibilities to expand their operations and enter new markets. Entrepreneurs from both nations could keep pursuing openness, inclusiveness, and win-win cooperation, as well as keep the stability of industrial and supply chains with high-level practical cooperation. This symbiotic relationship has allowed both nations to capitalize on their respective strengths, resulting in economic expansion and job creation for both countries.
China and Germany have also established cooperation in the fields of innovation and research, recognizing that advancements in these fields are crucial agents of economic and societal progress. Through joint research initiatives, academic exchanges, and institution-to-institution collaboration, both nations have been able to pool their intellectual resources, foster innovation, and address global challenges. This cooperation has not only led to revolutionary scientific discoveries, but it has also set the groundwork for future innovations in technology that will benefit all of humanity.
China and Germany have fostered cultural exchange and people-to-people diplomacy in addition to their economic and technological cooperation. By encouraging education exchanges, cultural events, and intercultural dialogue, both countries have built bridges of appreciation, understanding, and friendship. Not only do these interactions enrich the lives of individuals, but they also strengthen the bilateral relationship as a whole. They facilitate dialogue, eliminate preconceived notions, and set the groundwork for mutually beneficial relationships and respect.
By expanding on these accomplishments and upholding a spirit of mutual respect and shared objectives, the China-Germany partnership can continue to advance progress and inspire global collaboration.
The China-Germany model of win-win cooperation provides valuable lessons for nations seeking to forge prosperous partnerships. It emphasizes the significance of mutual respect, trust, and open communication as the foundations for productive collaboration. It also emphasizes the importance of recognizing and capitalizing on balance in strengths and resources, which allows nations to maximize the positive effects of cooperation.
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