Hassan Rouhani, Iran’s centrist president, last week marked his government’s 100th day in office by releasing a report on the economy. It painted a grim picture, but rather than blame this on international sanctions Mr Rouhani said the populist policies of his predecessor, Mahmoud Ahmadi-Nejad, were largely responsible for the mess.
Mr Ahmadi-Nejad’s government enjoyed a record $600bn in oil revenues during eight years in office – the equivalent of what the country had earned in the century since it first discovered oil.
Despite the boost in income, Mr Rouhani said he inherited an empty treasury, at least $80bn in debt and a combination of high inflation (40 per cent) and economic stagnation (the economy shrank by 5.8 per cent), which was unprecedented in the past 50 years. “The previous government was the wealthiest and most indebted government,” he said.
Many economists are asking how any government can inflict such damage on an economy during an oil boom, with some saying Mr Ahmadi-Nejad’s policies should be taught in economics courses to show how a populist president can turn golden opportunities into disasters. Read more
• After meeting Hossein Shariatmadari, editor and commentator of Iran’s hardline Kayhan newspaper, the FT’s editor Lionel Barber says the conversation was a reminder that not all Iranians want a nuclear deal and that Iran’s “fractious relationship” with the rest of the world may not be about to end.
• An EU’s “Eastern Partnership” summit is trying to save hopes of a future deal with Ukraine. Russia’s tactics towards ex-Soviet countries preparing to do EU deals have raised questions over the future of an agreement and caused tensions between EU members, reports the FT. Read more
International reaction to the Iran nuclear deal
The United States and European Union are clearly delighted with the historic nuclear deal struck with Iran in Geneva last week, but some key US allies in the region, notably Israel and Saudi Arabia are not happy. John Reed, Jerusalem correspondent, James Blitz, defence and security editor and Siona Jenkins, Middle East news editor, join Gideon Rachman to discuss how the agreement will affect the balance of power in the region.
By Luisa Frey
• Back-channel conversations between the US and Iran paved way for the historic nuclear agreement and broke 34 years of hostility, writes the FT’s Geoff Dyer. Read more
By Gideon Rachman
For Barack Obama, striking a nuclear deal with Iran may turn out to be the easy part. The president’s biggest struggle now is facing down Israel and its supporters in the US as they attempt to rally opposition to the deal. The administration knows this and it is quietly confident that it can take on the Israel lobby in Congress – and win.
For the last seven years, Iran and world powers have been engaged in seemingly endless negotiations over whether the Iranian nuclear programme could be curbed. After each failure, diplomats and journalists ended up wondering whether diplomacy would ever prevail – or whether Iran would end up either getting the nuclear bomb or being bombed.
But this autumn three factors came into play to make this the moment when a landmark deal needed to be agreed – and when the years of deadlock and obfuscation needed to come to an end. The agreement, hailed as a historic moment, has halted further progress on the nuclear programme in return for a modest lifting of international sanctions. Read more
By Gideon Rachman
By blocking a deal on Iran’s nuclear programme, France has achieved the unusual feat of annoying the American and Iranian governments simultaneously. If the French had genuinely scuppered the chance of an agreement – making war much more likely – they would deserve all the anger directed at them. But by playing “bad cop” to the Obama administration’s good cop, the French have actually made it more likely that an eventual deal will achieve its goal of preventing an Iranian bomb.
Catherine Ashton, EU foreign policy chief, and Mohammad Zarif, Iran's foreign minister, ahead of talks in Geneva, November 7. Getty.
As Iran and world powers hold a new round of talks in Geneva on Tehran’s nuclear programme, western diplomats have one immediate goal in mind. They want Iran to call an immediate halt to further progress in the nuclear programme so that time can be found next year for a comprehensive solution to the stand-off with the west.
The first round of talks in Geneva last month between Iran and six world powers – the US, France, Britain, Germany, Russia and China – went well. Iran suggested it was looking to try and sign a comprehensive deal at some point in 2014 that lifts the full raft of international sanctions while setting out constraints on its nuclear activities.
But as they start negotiating over this hugely complex deal, western diplomats fear time is not on their side. Their concern is that while everyone is talking in Geneva, Iran is developing its nuclear programme on the ground at a speed which they believe is alarming. Read more
Iran and the P5+1 meet for nuclear talks in Geneva in October. Getty
In the unlikely setting of a bucolic French chateau complete with a pack of fox-hounds, former officials from Iran, Israel, China and the US have got together for a weekend of banquet-fuelled and ground-breaking discussions over Tehran’s nuclear programme.
The unusual talks, perhaps a first in the grey realm of “track two” or parallel diplomacy, sought to overcome the mistrust of hardliners on the many sides of the Middle East’s divides ahead of the resumption on Thursday of official negotiations in Geneva between Iran and the P-5+1, meaning the five permanent members of the UN security council plus Germany. Read more
Prospects of a deal over the Iranian nuclear programme
After the most productive talks on Iran’s nuclear programme in years in Geneva this week, Gideon Rachman is joined by defence and diplomatic editor James Blitz and Najmeh Bozorgmehr, Tehran correspondent, to examine what was discussed by the diplomats and how a potential deal might look.