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Rouhani Goes Shopping in Europe as Iran Enjoys New Economic Freedoms Rouhani Goes Shopping in Europe as Iran Enjoys New Economic Freedoms
(about 7 hours later)
PARIS — Europe, whose economic struggles have grown that much greater with recent problems in crucial markets like China and Russia, is rushing to do business with a newly accessible and eager, if still problematic, partner: Iran. PARIS — Europe, whose economic struggles have grown that much greater with recent problems in crucial markets like China and Russia, is rushing to do business with a newly accessible and eager, if still problematic, partner: Iran.
With the lifting of sanctions after its nuclear deal with the West, Tehran has gone shopping this week, bringing its checkbook and a long list of items it had been unable to acquire for years, from jetliners and European cars to pharmaceuticals and metals. With the lifting of sanctions after its nuclear deal with the West, Tehran has gone shopping this week, bringing its checkbook and a long list of items it had been unable to acquire for years, like jetliners and European cars, and pharmaceuticals and metals.
Despite lingering animosities and the United States’ designation of Iran as a sponsor of terrorist groups, European governments and corporations have made it clear that economic opportunity is going to trump concerns over human rights, security and politics for now.Despite lingering animosities and the United States’ designation of Iran as a sponsor of terrorist groups, European governments and corporations have made it clear that economic opportunity is going to trump concerns over human rights, security and politics for now.
The Iranian president, Hassan Rouhani, began his shopping spree in Italy, and continued it on Thursday in France.The Iranian president, Hassan Rouhani, began his shopping spree in Italy, and continued it on Thursday in France.
The Iranian leader was treated to full state honors at one of the French Republic’s most sanctified spots, Les Invalides, and the red carpet was rolled out for him at meetings with top business leaders. Later in the day, he met with President François Hollande at Élysée Palace. He was treated to full state honors at one of the French Republic’s most sanctified spots, Les Invalides, and the red carpet was rolled out for him at meetings with top business leaders. Later in the day, he met with President François Hollande at Élysée Palace. Lest they offend their guest, the French have kept wine off the menu, and the Italians covered up nude statues.
Lest they offend their guest, the French have kept wine off the menu, and the Italians covered up nude statues. So far the courtship has worked swimmingly. So far, the courtship has worked swimmingly, as Italian and French business leaders have barely been able to sign the contracts fast enough. By the end of Thursday morning, less than 24 hours into Mr. Rouhani’s visit to France, the carmaker Peugeot Citroën had signed a 400 million euro deal, about $438 million, with the Iranian carmaker Khodro. The oil company Total said it would sign a deal for 150,000 to 200,000 barrels a day. Airbus will sell 118 planes to the Iranians.
Italian and French business leaders have barely been able to sign the contracts fast enough, even as the Germans look on enviously. Even as analysts warn that the Iranian market may not be as easy to access as many hope, and that it may not be the answer that Europe desires to its economic downturn, the allure is proving nearly irresistible.
By the end of Thursday morning, less than 24 hours into Mr. Rouhani’s visit to France, the carmaker Peugeot Citroën had signed a 400 million euro deal, about $438 million, with the Iranian carmaker Khodro. The oil company Total said it would sign a deal for between 150,000 and 200,000 barrels a day. Airbus will sell 118 planes to the Iranians.
Even as analysts warn that the Iranian market may not be as easy to access as many here hope, and that it may not be the answer that Europe desires to its economic downturn, the allure is proving nearly irresistible.
Mr. Rouhani represents one-stop shopping by himself: The Iranian government controls 80 percent of the country’s economy. And with Iran’s population of around 80 million, much of it young and eager to spend after years of cheap Chinese goods, Western companies cannot get there fast enough.Mr. Rouhani represents one-stop shopping by himself: The Iranian government controls 80 percent of the country’s economy. And with Iran’s population of around 80 million, much of it young and eager to spend after years of cheap Chinese goods, Western companies cannot get there fast enough.
Deals and potential deals, signed and promised — for cars, planes, metals, pharmaceuticals — have been cascading. French companies should “rush” to Iran and “not waste any time,” said Pierre Gattaz, president of the French employer federation Medef. Deals and potential deals, signed and promised — for cars, planes, metals, pharmaceuticals — have been cascading. French companies should “rush” to Iran and “not waste any time,” said Pierre Gattaz, the president of the French employer federation Medef.
As Prime Minister Manuel Valls said Thursday: “France is available for Iran.” France, he said — with Mr. Rouhani at his side at a meeting of the employer’s federation — is “ready to mobilize its companies, its engineers and its technicians, its numerous resources, to contribute to the modernization of your country.” As Prime Minister Manuel Valls said Thursday, “France is available for Iran.” France, he said — with Mr. Rouhani at his side at a meeting of the employer’s federation — is “ready to mobilize its companies, its engineers and its technicians, its numerous resources, to contribute to the modernization of your country.”
Later, when Mr. Hollande received Mr. Rouhani, the French leader was noticeably unsmiling after a day marked by human rights protests against the Iranian president in Paris. About 20 agreements were signed in the presence of the two presidents, from pledges to cooperate in health and agriculture to deals for planes, construction work and pharmaceuticals. Later, when Mr. Hollande received Mr. Rouhani, the French leader was noticeably unsmiling after a day marked by human rights protests against the Iranian president here. About 20 agreements were signed in the presence of the two presidents, such as pledges to cooperate in health and agriculture, and deals for planes, construction work and pharmaceuticals.
Mr. Hollande said Syria had been discussed — Iran’s support for President Bashar al-Assad has been unwavering while France insists he must go. “We spoke of everything,” Mr. Hollande said. “I recalled the attachment of France to human rights,” he added, as Mr. Rouhani looked on grimly. Mr. Hollande said Syria had been discussed — Iran’s support for President Bashar al-Assad has been unwavering, while France insists he must go. “We spoke of everything,” Mr. Hollande said. “I recalled the attachment of France to human rights,” he added, as Mr. Rouhani looked on grimly.
Beyond the money, though, Mr. Rouhani’s European visit has important political and symbolic overtones, experts said. Beyond the money, Mr. Rouhani’s European visit has important political and symbolic overtones, experts said.
Signing deals and meeting with Western politicians reinforces his own moderate faction in the face of powerful conservative elements in Iran — mostly because it shows the president taking an active role to turn around his country’s troubled economy. Signing deals and meeting with Western politicians reinforce his own moderate faction in the face of powerful conservative elements in Iran — mostly because it shows the president taking an active role to turn around his country’s troubled economy.
“The logic of Rouhani, to get out of this difficult situation, is the normalization of Iran’s economic relations with the world,” said Fereydoun Khavand, a professor of economics at L’Université Paris Descartes. “He is supported by the middle classes, the urban population.”“The logic of Rouhani, to get out of this difficult situation, is the normalization of Iran’s economic relations with the world,” said Fereydoun Khavand, a professor of economics at L’Université Paris Descartes. “He is supported by the middle classes, the urban population.”
Mr. Rouhani and the 11-odd ministers accompanying him on the state visit to Europe represent the moderate faction “and they want to open up and go to the world, to assure the integration of Iran in the global economy,” Mr. Khavand added. Mr. Rouhani and the 11-odd ministers accompanying him on the state visit to Europe represent the moderate faction, “and they want to open up and go to the world, to assure the integration of Iran in the global economy,” Mr. Khavand added.
Mr. Rouhani’s trip is a calculated gamble against the conservative elements — that he has the popular will on his side, analysts said.Mr. Rouhani’s trip is a calculated gamble against the conservative elements — that he has the popular will on his side, analysts said.
“His opponents say, ‘you’ve weakened Iran with the nuclear deal,’” said Thierry Coville, an Iran specialist at the Institut de Relations Internationales et Strategiques, a think tank. “And he says, ‘my politics of normalization reinforces the role of Iran in the world.’” “His opponents say, ‘you’ve weakened Iran with the nuclear deal,’ ” said Thierry Coville, an Iran specialist at the Institut de Relations Internationales et Strategiques, a think tank. “And he says, ‘My politics of normalization reinforces the role of Iran in the world.’ ”
“He’s telling the Iranian population that, ‘we are being taken seriously,’” Mr. Coville said. “And I think the population is receptive.” “He’s telling the Iranian population that ‘we are being taken seriously,’ ” Mr. Coville said. “And I think the population is receptive.”
To be sure, Mr. Rouhani’s moderation is relative, and several substantial protests against his visit were mounted in Paris on Thursday to serve as reminders. To be sure, Mr. Rouhani’s moderation is relative, and several substantial protests against his visit were mounted in Paris on Thursday. A half-dressed woman harnessed herself by rope to a bridge as a reminder that Iran discriminates against women and is a leader in executions by hanging — carrying out at least 830 for last year by Nov. 1, according to Human Rights Watch.
A half-dressed woman harnessed herself by rope to a bridge as a reminder that Iran discriminates against women and is a leader in executions by hanging — carrying out at least 830 for last year by Nov. 1, according to Human Rights Watch. Another rally focused on repression and political prisoners in Iran, where, according to Human Rights Watch, scores of people are held for their affiliation with banned opposition parties, and journalists and bloggers are routinely jailed.
Another Paris rally focused on repression and political prisoners in Iran, where, according to Human Rights Watch, scores of people are held for their affiliation with banned opposition parties, and journalists and bloggers are routinely jailed.
The French and Italian businessmen who greeted Mr. Rouhani this week were all smiles, nonetheless, and the politicians who shepherded them were scarcely less benevolent.The French and Italian businessmen who greeted Mr. Rouhani this week were all smiles, nonetheless, and the politicians who shepherded them were scarcely less benevolent.
France, well-practiced, also maintains excellent relations with Iran’s archrival Saudi Arabia, itself a leader in human rights violations. Mr. Rouhani for his part appeared pleased with his reception, hailing “a new relationship” with France and saying he wanted to “turn the page.” France also maintains excellent relations with Iran’s archrival Saudi Arabia, itself a leader in human rights violations. Mr. Rouhani for his part appeared pleased with his reception, hailing “a new relationship” with France and saying he wanted to “turn the page.”