IRAN: ITALY FAULTS GERMANS FOR DELAYS OF EU

C O N F I D E N T I A L ROME 000173 NOFORN SIPDIS E.O. 12958: DECL: 02/12/2019 TAGS: PREL KNNC ETTC EFIN IT SUBJECT: IRAN: ITALY FAULTS GERMANS FOR DELAYS OF EU DESIGNATIONS Classified By: Acting DCM Barbara A. Leaf for reasons 1.5 (b) and (d). ¶1. (C/NF) Summary. Italy faults Germany for postponing recent EU-level experts meetings on new Iran proliferation-related designations that were scheduled for February 11. The MFA is concerned the EU is losing momentum while waiting for US policy announcements and highlighted that every small delay now will only magnify the delays later and could damage successful end results. End summary. ¶2. (C/NF) According to Italian MFA Office Director for Disarmament and Arms Control, Emanuele Farruggia (protect), Italy submitted in good faith additional entities and individuals for consideration with the full intent that, after the required 14 review days, the EU member states would consider adding these entities to the sanctions designation list. Farruggia said the German request to postpone the Council working group on non-proliferation and the regional experts meeting (scheduled for February 11) was news to Italy, suggesting Berlin was using the GOI submission as a pretext simply to halt further work on sanctions. He noted that the Iranian entities Italy had submitted had approached Italian firms and that Italy had wanted to address this issue promptly. ¶3. (C/NF) Farruggia expressed his concern that there was not agreement within the EU4 on the list itself and again highlighted Germany's delay as unhelpful. According to Farruggia, Italy had anticipated moving forward but found that along with Germany, Cyprus, Portugal, Spain and to a lesser degree Sweden, resisted moving forward - claiming to want additional guidance on US policies. He relayed that the EU4 were discussing holding a meeting in March (location and date to be determined) to attempt to gain more agreement on next steps and to build consensus. Farruggia stressed that with every small delay, the end results would only be further delayed. ¶4. (C/NF) Comment: Our MFA interlocutor was discouraged by Germany's move. The GOI appears serious to us about wanting to move ahead on EU measures, and shares our sense of concern that now is not the time to suspend this type of activity. They have taken seriously our message, most recently conveyed by U/S Burns at the February 2 G8 Political Directors Meeting in Venice, that the US policy review on Iran should not delay further movement on EU or National measures. DIBBLE