by Tomas Valasek

When the EU's first 'foreign minister', Cathy Ashton, starts work on December 1st, she will find Iran on top of her 'to do' pile. Earlier this week, Tehran turned down a proposal from the International Atomic Energy Agency (IAEA) that would have seen a large part of the country's stock of uranium moved out of the country for further enrichment. Barring a last-minute change of heart in Tehran, the US, UK, France and Germany will soon move to tighten UN sanctions on Iran. This could set the scene for a confrontation with Russia and China, which are unconvinced that tough sanctions would work.

It will fall to Ashton to try to get Iran to reconsider. The country's government has not rejected the IAEA proposals outright; it has offered a counter-proposal, which US and European officials deem unacceptable. The Iranians may simply be buying time but there is a small hope that they are open to compromise. Before the UN Security Council imposes further sanctions, the EU needs to be absolutely sure that Iran does not want a deal.

The trouble is that the chances of a negotiating breakthrough with Iran, never high, have diminished since the fraudulent elections in Iran in June 2009 and their bloody aftermath. For the past five months, the country has been mired in twin crises: one within the regime (a band of clerics versus the former Revolutionary Guard commanders grouped around President Mahmoud Ahmadinejad) and another one between the regime and the people. The government appears to have become dysfunctional. Tehran wavered for weeks over the recent Western proposals before rejecting them. It is not obvious that in a country as unstable as Iran is today, any centre of power has the courage to push for a compromise with the West (though some Iran watchers have warned that Tehran could be faking indecision while it buys time to develop further its nuclear programme).

It had been hoped that Barack Obama's entry into the nuclear talks would strengthen the EU's negotiating hand. In the past Iran had made clear to EU diplomats that it would not accept any agreement that did not involve the US. But Obama's charm offensive has had a limited effect. True, it “empowered advocates of engagement inside Iran and transferred the onus of co-operation from the US to Iran”, one Iran expert told a recent gathering of foreign policy thinkers and officials convened by the CER and other think-tanks in Stockholm. Obama's efforts have also made it more likely that Russia will support sanctions. But even after the US had joined the Iran talks and Obama had offered “dialogue without preconditions”, Tehran decided to reject the recent IAEA package.

High Representative Ashton and other western diplomats have few effective tools left to pressure Iran into changing its position, so the world's attention is shifting towards negotiating a new sanctions regime. The EU used to be divided on further sanctions, with France and the UK strongly in favour and Germany more sceptical. But Chancellor Angela Merkel's recent tough language on Iran (in a speech to a joint session of the US Congress) suggests that the new centre right-liberal coalition views sanctions more favourably (this was confirmed by senior German diplomats at the Stockholm event).

The key critics of tighter sanctions are Russia and China, whose top officials have argued on many occasions not only that sanctions would fail to stop Iran's nuclear programme, but also that they would boost the position of radicals within the country. They are right that sanctions are a very blunt instrument. Tougher sanctions almost certainly would strengthen the Revolutionary Guards' stranglehold on the economy and thus, paradoxically, empower the most authoritarian of Iranian political forces and set back the cause of Iran's liberalisation. Sanctions could also prompt Iran to kick out the IAEA inspectors who monitor Iran's nuclear facilities; this would leave the world blind to Iranian nuclear intentions.

But the case for sanctions, on balance, seems somewhat stronger. They discourage other states in the region from following Iran down the nuclear path, and they give the US and - crucially - Israel an alternative to the use of force. Existing sanctions have worked to the extent that they have deprived Iran of some needed technology; the centrifuges used to enrich uranium are said to be crashing frequently. And contrary to what Russia and China say, precedents suggest that sanctions can, under the right circumstances, bring weapons programmes to halt. As one US participant at the Stockholm meeting pointed out, “sanctions against Iraq in the 1990s and early 2000s worked so well that they made the invasion of that country completely unnecessary”. It transpired after the war that Iraq had given up its nuclear and biological programmes years before the US invasion, in large part because it could not obtain the necessary technology.

The two European members of the UN Security Council, France and the UK, along with Germany and the US, will lead negotiations at the UN on further sanctions. But Ashton will still have an important role to play. Sanctions are not meant to replace talks but to complement them; the idea is to inflict hurt on Iran's economy and political classes in order to get the government to accept nuclear proposals from the IAEA. So Cathy Ashton, like Javier Solana before her, will be expected to keep up talks with Iran while the UN debates sanctions, and after the UNSC agrees a new regime. The UNSC is likely to do so: President Dmitri Medvedev has hinted that Russia will swallow somewhat tougher sanctions, while China rarely vetoes UNSC resolutions alone (unless they concern Tibet or Taiwan).

But one wonders if this is the EU's last hooray on Iran. If the combination of sanctions and talks fail, the remaining options would seem to leave little room for EU diplomacy. If Israel strikes Iran's nuclear facilities, Tehran will certainly call off the EU-led talks. The other choice before the world is to start preparing for a nuclear Iran. A strategy of containment would require western governments to focus on making Iran's neighbours feel secure, so as to discourage them from building nuclear weapons themselves. But this will almost certainly be a job mainly for the US, rather than the EU. So while Baroness Ashton will spend a lot of time on Iran at the beginning of her term, the EU may gradually lose its leading role.

Tomas Valasek is director of foreign policy and defence at the Centre for European Reform.

by Katinka Barysch

The revolts in Tunisia, Egypt and Libya have brought home to many people that Turkey has become a force to be reckoned with in this region. Turkey enjoys lots of credibility in the Arab world. It has burgeoning trade ties and solid political relations with many Middle Eastern and Mediterranean countries. As the EU scrambles to revamp its own neighbourhood policy, it would do well to work closely with Turkey. Turkey would also gain. Sadly, there is little evidence of such co-operation to date. 

Asked at a recent Aspen roundtable in Istanbul whether the EU and Turkey were co-ordinating their responses to the revolts in the Arab world, Ali Babacan, a veteran minister in the Erdogan government, said: "We work a lot with the Americans, like we do on Afghanistan, but not with Europe." The main reason, he said, was that his country's plan to join the EU was going nowhere.

The EU - in acknowledgement of Turkey’s growing international clout - has offered Ankara a foreign policy dialogue outside the accession process. But the dialogue has yet to start in earnest. Most of the interaction between Turkey and the EU still revolves around a largely blocked accession process. Foreign Minister Ahmet Davutoglu - at the same Aspen roundtable - added a second reason why foreign policy co-ordination had been slow to get off the ground. Turkey, he explained, did not bother to work with the EU because the EU's own neighbourhood policy was weak and inconsistent.

Davutoglu and his colleagues in Ankara should reconsider. The uprisings in the Arab world are spurring the EU to rethink its neighbourhood policy (see Charles Grant, 'A new neighbourhood policy for the EU'). They could also wreck Turkey's 'zero problems with the neighbours' approach to its region - which is already in trouble after Turkish attempts to mediate in several regional conflicts failed and Ankara fell out with Israel.

Although today's Turkey likes to see itself as a regional leader, its influence in the Middle East, and even more so in the Maghreb, is still rather fresh and fragile. During the Cold War years, Turkey was largely isolated in its neighbourhood. It clung to its NATO allies while viewing its southern neighbours as sources of Islamic extremism, Kurdish separatism and other potential security threats.

In the 1990s, there were initial attempts to make up with old adversaries like Syria and Iran. These accelerated after the AK party took power in 2002. Turkish mediation efforts, for example between Israel and Syria or Iran and the West, have produced no tangible results. But over the last decade, Turkey has created a web of political, economic and civil society ties with almost all of the countries around its borders. Turkey has scrapped visa requirements for Syrians, Tunisians, Lebanese, Libyans and Moroccans; it is building a free trade zone with various Mediterranean countries; and Turkish traders, builders and bankers are active across the region, as are Turkish business federations and other non-governmental organisations.

Bizarrely, as Kemal Kirisci points out in a recent GMF-IAI paper ('Turkey: Reluctant Mediteranean power'), Turkey's neighbourhood policy has moved from its security-obsessed origins to good old-fashioned European functionalism – the belief that economic integration and lots of low-level exchanges will bring political understanding and stability. The EU's Mediterranean policy has also involved scrapping trade barriers. And it talks about nice things such as democracy and good governance. But in reality it has taken a security-first approach, focusing mainly on fighting terrorism, fundamentalism, and illegal migration.

The revolts in Northern Africa have already forced the EU to think harder about how to help introduce democracy and create economic opportunities in its southern neighbours. Turkey, meanwhile, will probably move security back to the heart of its neighbourhood policy, especially if political upheaval spreads closer to its borders, and if some of the new regimes in the region start quarrelling with Israel or Iran.

Both Turkey and the EU will grapple with finding a balance between the objectives of stability and democracy in their neighbourhood policies. Unlike the EU, Turkey has not in the past claimed to be promoting democracy in the Arab world. Erdogan has managed to gain the admiration of the Arab street - partly through supporting Palestinians and criticising Israel - while at the same time snuggling up to some of the region’s most autocratic rulers, including Colonel Gaddafi, Mahmoud Ahmadinejad and Bashar al-Assad. Erdogan's initial reaction to the Arab uprisings was equally inconsistent. He called on Egypt's President Mubarak to leave and he welcomed Tunisia's move to democracy. But in the case of Libya, Erdogan has been holding out against sanctions and any kind of military intervention. And he has never criticised Ahmadinejad for rigging elections or Assad for clamping down on his opponents. In the new political environment, Turkey's standing in the Arab world will suffer unless its approach to democracy promotion becomes more coherent and consistent.

Turkey's ruling AK party, which itself has some roots in outlawed Islamist forces, has strengthened ties with various Islamist movements in its neighbourhood, including the Muslim Brotherhood in Egypt. The AKP could help turn such movements into electable political parties. However, at a time when the Erdogan government is accused of moving towards religious conservatism and political authoritarianism, collaboration with Islamists elsewhere would scare people inside Turkey and outside. They would ask whether Turkey was trying to promote democracy or Islamism in its foreign relations. Such suspicions would be mitigated if the AKP's ties with Islamists in Egypt and elsewhere were part of an EU-supported democratisation and institution-building programme.

The EU would also benefit greatly from working with Turkey - and not only because Turkey brings valuable regional links and expertise to the table. Having lost much of its kudos by focusing aid and political attentions on various autocratic regimes, the EU could regain soft power by working with Turkey - a country that still enjoys much esteem across the Arab world.

The revamp of respective neighbourhood policies could be an opportunity for the EU and Turkey to get serious about foreign policy co-ordination and thus improve their strained bilateral ties. Co-operation should go beyond political dialogue between Brussels and Ankara and involve business federations, foundations and other non-governmental organisations that can help Mediterranean countries become more stable and prosperous. Without this kind of co-ordination, rivalries and misunderstandings between the EU and Turkey could further undermine their bilateral relationship and the effectiveness of their respective neighbourhood policies.

Katinka Barysch is deputy director of the Centre for European Reform