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Germany's Embarrassing Policy on Iran

Never has Germany been more isolated, wrote Former Foreign Minister Fischer regarding Berlin's position on Libya. The Merkel-Westerwelle government alienates our Western allies with its dealings with Iran as well. Apparently, Germany's foreign and economic ministries agreed to let India pay 9 billion euro to Iran via Germany's central bank.

The United States had pressured India's central bank to end previous business transactions with Iran via an Asian bank. Now Germany's government appears to be undermining these sanctions. India gets about 15 percent of its crude oil imports from Iran. Sources in German: Handelsblatt and Zeit. In English: New York Times.

According to Spiegel International the stands in connection to the release of two German journalists from Iran.

Are Germany and India new best buddies? Both abstained in the UN Security Council on Libya.

Dialog International writes about "The Westerwelle Doctrine", which "would seem to dictate that Germany will seek out different international partners depending on how the domestic winds are blowing.  Germany is happy to align with the US and Great Britain, as long as it doesn't require the use of force or the commitment of resources.  Otherwise it will join with Russia, Brazil or India."

Atlantic-community.org wonders how Germany can repair the damage to its international reputation and convince voters of the right course at the same time. Foreign policy makers and experts in Germany and around the world criticize Germany's position on Libya. However the majority of Germans seem to approve it.  Any ideas?

UPDATE (April 5, 2011): AP: "A plan for India to funnel oil payments to Iran through Germany's central bank at a time when Tehran faces international sanctions has been scrapped, a German government official said Tuesday."