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Iran, E3 Agree to Resume Nuclear Talks: Iranian Media
Iran, E3 Agree to Resume Nuclear Talks: Iranian Media

Al Manar

time4 days ago

  • Politics
  • Al Manar

Iran, E3 Agree to Resume Nuclear Talks: Iranian Media

Iran and the European troika –the UK, France and Germany- have agreed to resume their nuclear negotiations, Tasnim news agency reported on Sunday, quoting an informed source. The source told Tasnim that Tehran and the European parties to the 2015 nuclear deal have come to an agreement in principle on the resumption of the talks about Iran's nuclear program, but the timing and location of the negotiations are under debate. The decision as to which country will be hosting the upcoming talks has not been finalized yet, the source said. Tasnim had obtained information earlier that Iran was considering a request from the European troika, referred to as EU3, about the resumption of talks on the nuclear issue and the removal of sanctions. Reports suggest that the next round of talks will be held at the level of deputy foreign ministers of Iran, the UK, France and Germany. #BREAKING | Iran and the 'Eurogroup' (E3, Germany, France, UK) have agreed to hold talks on the Iranian nuclear issue, according to Tasnim. No specific dates for the negotiations have been set yet. — The Global Eye (@TGEThGlobalEye) July 20, 2025 Tehran and Washington were engaged in negotiations led by Iranian Foreign Minister Abbas Araghchi and US President Donald Trump's foreign envoy Steve Witkoff and had conducted five rounds of indirect talks mediated by Oman when Israel launched a series of unprovoked aggressions, which upended the process. While the Zionist regime waged a war of aggression against Iran on June 13 and struck Iran's military, nuclear, and residential areas for 12 days, the US stepped in and conducted military attacks on three nuclear sites in Iran's Natanz, Fordow, and Isfahan on June 22. The Iranian military forces conducted powerful counterattacks immediately after the aggression. The Islamic Revolution Guards Corps Aerospace Force carried out 22 waves of retaliatory missile strikes against the Zionist regime as part of Operation True Promise III, which inflicted heavy losses on cities across the occupied territories. Also, in response to the US attacks, Iranian armed forces launched a wave of missiles at Al-Udeid air base in Qatar, the largest American military base in West Asia. A ceasefire that came into force on June 24 has brought the fighting to a halt.

What's wrong with a weak euro?
What's wrong with a weak euro?

Euractiv

time11-07-2025

  • Business
  • Euractiv

What's wrong with a weak euro?

The meek, Jesus famously assured us, shall inherit the Earth. European policymakers' recent pronouncements, however, suggest they profoundly disagree with the Messiah. Barely a single speech by EU leaders or officials these days fails to emphasise Europe's underlying strength , resilience , or solidity . Policymakers also routinely stress the importance of Europe's robust institutions, firm decisions, and the ( latent ) power of its single market. The EU's rhetorical muscle was on full display this week, when Danish premier Mette Frederiksen mentioned the word 'strong' or 'strength' eight times in a speech to MEPs unveiling her country's EU Council presidency programme. Tellingly, Denmark's official slogan for its six-month chairmanship is: 'A strong Europe in a changing world'. Paschal Donohoe , Eurogroup president, similarly called for a 'stronger and more competitive euro area' to 'further enhance our resilience' and 'reinforce the international role of the euro' shortly after his re-election as chair of the (genuinely) powerful forum on Monday. Claims of Europe's actual or potential strength are, clearly, justified in many areas. Europe does , after all, have resilient institutions; and it should harness the economic and financial power of its citizens and companies. However, such assertions are much more controversial – and potentially disastrous – when applied to the euro itself. Many of the problems associated with a stronger currency are already visible. The euro's value has surged in recent months, rising more than 13% against the dollar and more than 11% against the Chinese yuan since the start of the year. The increase is, in part, a show of confidence in the currency. Investors, concerned at US President Donald Trump's erratic policymaking, have sought to diversify their holdings away from dollar-dominated assets. For many, Europe seems a far safer place to park their money. Unfortunately, these exchange-rate fluctuations are also causing growing headaches for European businesses and policymakers. First, by raising the 'price' of European exports relative to their American and Chinese competitors, a stronger euro has exacerbated EU exporters' woes at a time when Trump's sweeping tariffs and fierce Chinese competition are inflicting serious economic pain. Second, and relatedly, a stronger currency has rendered imports into Europe considerably cheaper, thus incentivising consumers to purchase foreign products instead of domestic goods. This latter effect is, naturally, good for ordinary citizens. But it is also disastrous for businesses, especially in export-oriented industries such as automotive and pharmaceutical manufacturing. For policymakers, it also means that inflation, which has only recently been tamed after three years of painfully high prices, now risks undershooting the European Central Bank's 2% target. Exorbitant privilege – or execrable burden? Unfortunately, these issues would likely only become even more severe if the euro eventually displaced the dollar to earn the 'exorbitant privilege' of being the world's reserve currency. For while the dollar's dominance has allowed the US to borrow at exceedingly low rates (owing to the massive global demand for dollar-denominated assets), it has also harmed US businesses and, arguably, contributed to America's decades-long industrial decline. The Janus-faced nature of the US's exorbitant privilege is explicitly recognised by many US officials. As US Vice-President JD Vance said last year: 'I think in some ways you can argue that the reserve currency status is a massive subsidy to American consumers but a massive tax on American producers.' Of course, no one expects the euro to displace the dollar anytime soon. Despite declining in recent years, the greenback still accounts for 58% percent of global foreign exchange reserves. The euro's share, by contrast, is just 20% – down from around 25% a decade ago. In addition, just under half of all cross-border banking and international bonds are denominated in dollars, as is roughly four-fifths of international trade. In a sign that investors' faith in Europe may be limited, gold also recently surpassed the euro to become the world's second-largest reserve asset. Whence the dollar's continued dominance? There are many reasons, but they include Europe's fragmented capital markets , its incomplete banking union, and, perhaps most critical of all, an insufficient number of 'safe assets', or risk-free investment products. For instance, the total value of German bunds, the eurozone benchmark, is around €2.5 trillion. By contrast, the US Treasury market is worth a whopping $30 trillion. Berlin's recent pledge to splurge €1 trillion on infrastructure and defence looks, in relative terms, like pocket change. A historic warning A much more serious and realistic danger, however, is that the euro, and perhaps other currencies like the yuan, gradually erode the dollar's pre-eminence, thus eventually leading to the formation of a ' multipolar financial system ' in which no single currency dominates. ECB President Christine Lagarde, who recently called on Europe to 'seize' this ' global euro moment ', has also predicted that the world is heading in this direction. For many – although not for Trump – a multipolar financial system seems like a good idea, given that it would make the world less dependent upon the whims of an increasingly capricious US. While this is partly true, the development of such a multipolar system also comes with significant risks. After all, the last time a single currency failed to dominate the world's financial system was during last century's interwar period, when the dollar gradually displaced the British pound – an episode which culminated in the moral abyss of the Second World War. While the connection between the pound's overthrow and the outbreak of the war is a matter of scholarly dispute, many economists believe that the presence of multiple competing currencies is a potential recipe for economic disaster. In a remarkably prescient 2009 paper, the World Bank warned that 'a multiple-reserve-currency setting' could trigger 'credibility problems', in which 'holders of one major currency can easily shift to another, exposing the disfavoured currency to quick, sharp depreciation and the favoured currency to rapid appreciation'. Such a dynamic could potentially threaten global financial stability 'with consequences for economic activity and development in all countries', they added. Other studies – including by the ECB itself – have reached broadly similar conclusions. How can one address this problem? For the World Bank, the volatility of such a multiple-reserve currency system can only be tamed by a 'managed international system' in which competing financial blocs coordinate their respective monetary policies. However, they also warned that Washington is unlikely to willingly accede to the loss of its exorbitant privilege. 'In order to mitigate an abrupt loss of power, the United States is likely to be selective in its support for multilateral institutions, and will concentrate instead on the bilateral relationships in which it can best project and maintain its economic power,' they noted. The parallels with today's world – defined by US trade wars and Trump's deep-seated scepticism of multinational bodies like the World Trade Organization – are eerie. Jesus, of course, may have been wrong that the meek would inherit the Earth – he was (partly) human, after all. Unfortunately, it's looking increasingly likely that, meek or not, there won't be much of a world for Europe to inherit. Economy News Roundup EU braces for Trump's tariffs. The US president said on Tuesday that the bloc will "probably" receive a letter setting its new US tariff rate on Thursday. "I just want you to know a letter means a deal,' he said. (EU officials were still waiting for the letter to arrive on Friday morning.) The comments come amid growing efforts by the EU to avoid sweeping 'reciprocal tariffs' on its US exports, which had previously been set to enter into force on Wednesday, but have since been pushed back to 1 August. Trump has already imposed 50% tariffs on steel and aluminium , 25% duties on cars and car parts , and a 10% levy on most other goods since his return to the White House in January. On Thursday, he announced that a new 50% levy on copper would enter into force on 1 August. Read more. The EU must accelerate efforts to 'de-risk' from China, says Ursula von der Leyen. The European Commission president said Beijing's recent export restrictions on so-called rare earths – used to manufacture smartphones, electric vehicles, and other advanced technologies – show that her flagship policy of 'de-risking but not de-coupling' from the world's second-largest economy must 'speed up'. '[W]e have learnt the lesson about the extent to which dependencies are vulnerabilities,' von der Leyen said in an address to the European Parliament in Strasbourg. 'And how tech, trade and security are inherently linked. De-risking is simply a matter of European independence.' Read more. Paschal Donohoe re-elected Eurogroup president. The Irishman received unanimous support from his fellow eurozone finance ministers just hours after Spain's Carlos Cuerpo and Lithuania's Rimantas Šadžius pulled out of the race to lead the powerful forum. In a statement, Donohoe pledged to be "a genuine and honest broker" who will ensure that "all voices and positions are taken into account". "It will be my task to further strengthen our common currency area and facilitate tangible progress on our key work streams during this next mandate – from budgetary coordination to the Capital Markets Union, and from the digital euro to the Banking Union," he added. Read more. EU's push to boost military expenditure could undermine the bloc's financial stability, says Denmark. Stephanie Lose, Copenhagen's economy minister, told Euractiv that Europe must ramp up defence spending 'very quickly' to deter Russia's growing military threat, but warned this outlay may pose an additional 'risk' to the bloc's economy, which is already reeling from the twin impact of US tariffs and fierce Chinese competition. 'At the same time as there is this unrest in the economies across the world, [we] need to boost defence spending very quickly,' said Lose, whose country took over the rotating Council presidency from Poland earlier this month. 'That is a risk factor for our economies, because if we don't combine that with wise decisions on ways to a more sustainable path for public finances, then I guess it will be a problem in terms of increased debt levels and unsustainable finances." Read more.

EU's goodwill towards Ireland is intact – but for how much longer?
EU's goodwill towards Ireland is intact – but for how much longer?

Irish Times

time11-07-2025

  • Business
  • Irish Times

EU's goodwill towards Ireland is intact – but for how much longer?

Winning a third term as president of the Eurogroup was more than a personal triumph for Minister for Finance Paschal Donohoe , it was a reflection of the fact that Ireland has one of the soundest economies in the European Union. Our public finances are in a strong position to withstand the impact of the Trump tariffs , whatever they turn out to be. Ireland does, however, have serious challenges ahead in recalibrating our commitment to the EU in the light of a more dangerous world where defence, migration and trade wars are the dominant issues. There is a feeling in some other member states that the backing Ireland got over Brexit has not been reciprocated on security and defence. There is not a great deal of sympathy for our special pleading about the EU response to whatever tariffs Trump does impose. At an event in Iveagh House last week to mark the Irish presidency of the EU in the second half of next year, Danish ambassador Lars Thuesen was clear that the biggest issue during his country's current presidency is defence. In light of our pathetic record on defence, Ireland will have to face up to some serious thinking on the topic before our presidency begins. That said, Donohoe's re-election to head the Eurogroup for a third time shows that there is still a great deal of goodwill out there for Ireland as long as it takes its responsibilities seriously. READ MORE Presenting Donohoe with the highest order of the Légion d'Honneur recently, former French finance minister Bruno Le Maire remarked that in 2020, the Irish Minister was first elected as president of the Eurogroup despite the opposition of a fierce group of countries led by – guess who? – France. Le Maire added that at the time he believed it would be better for the Eurogroup to be led by a southern country. 'I was wrong. Not only because Ireland was an excellent choice, but also because you have some features of a minister from the south: you do not believe in austerity, you are pragmatic, and you have quite a warm personality.' Some big member states were reported to be a bit dubious about giving Donohoe yet another term, but in the end they backed off. It was a signal that Ireland can still punch above its weight – but that indulgence will come to a rapid end if we prove incapable of delivering on the big issues during our presidency. The same applies at a domestic level, where action is urgently required to deal with a range of issues, particularly infrastructure and housing. These are actually the problems of prosperity and the resources are there to deal with them if the political will exists to confront the array of vested interests blocking progress. Ireland's prosperity is reflected in the latest census figures, published in the past week, which show that the population of the island has risen above seven million for the first time since before the Famine. The bulk of that increase has taken place south of the Border, with a 31 per cent increase in population between 2002 and 2022. [ EU and US on brink of tariff deal to avoid trade war Opens in new window ] This rise reflects the remarkable growth in the Irish economy since the beginning of the century, despite the setback of the 2010 financial crisis. All of the parties who have participated in government – Fianna Fáil, Fine Gael, the Labour Party and the Greens – can take some share of the credit for the remarkable recovery in the years since the crash. This recovery has manifested itself not just in the figures for economic growth but in real improvements in living standards for the people of the country. For instance, on the most basic level of all, life expectancy has increased by six years on average since 2000 and now stands at 82.7 years, compared to 76.5 years in 2000 and 70 years back in 1960. The rapidly rising population, improved life expectancy and higher living standards give the lie to the 'failed state' narrative. Yet it still holds sway among many commentators who cannot bring themselves to admit that Ireland is no longer a poor country but a prosperous one, with all the problems prosperity brings. What a contrast with our nearest neighbours in the UK where Keir Starmer's government is finding it so difficult to get the public finances in order. Just this week the Office for Budgetary Responsibility (OBR) in the UK delivered a truly grim economic outlook, warning that the debt-to-GDP ratio is approaching 100 per cent with a budget deficit of 6 per cent. The contrast with Ireland, which last year recorded a budget surplus of €23 billion, could not be greater. While this figure included the once-off Apple payment of €13 billion , the exchequer is on course to record another healthy budget surplus this year. While we are certain to face more testing times ahead with Trump's tariffs, and his efforts to get US firms to relocate their manufacturing operations to the US, Ireland is starting out from a position of strength which should give Donohoe and his colleagues the time to adjust to whatever the future holds.

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