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Austria's Marriage with Iran: a Perilous Relationship

The Iranian nuclear program and Iran's hidden nuclear agenda have not only brought about an imbalance in the Middle East and in the Gulf Region, but have also created a critical situation with regard to security throughout the world. The developments of the past years and Iran's current nuclear policies do not point toward a change of heart. Vienna has gained relevance ever since Austria became a (non-permanent) member of the U.N. Security Council. However, Austria has accrued a reputation of being soft on Iran, ever since it joined forces with Italy in 2008 to head a group within the European Union that was against additional pressure and measures against the Islamic Republic. From that time on, public pressure on Austria has continuously increased. The United States, Great Britain and France have all complained about Vienna's "slack" position.

Austro-Iranian relations: complex bilateral ties steeped in tradition

There are approximately 680 Austrian companies that have business dealings with Iranian companies or the Iranian state. In recent years, export credits were issued, among others, to Voith Siemens (turbines for a pump storage power plant), Andritz AG (modification and modernization of a paper recycling plant), Liebherr (construction cranes) and VAI (construction of an electric steel plant). Around 35 Austrian companies have branch offices in Iran; another 500 have business dealings with the Islamic Republic every now and then. Today, only a few speak publicly about their involvement with Iran. Green technology (waste of energy is widespread; Tehran has an enormous smog problem), alternative energy and automobile industry subcontracting are sunrise industries. In 2006, the Iranian Chamber of Trade President Khamoushi said, "Austria is our gateway to the European Union."

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