Macron made a hat trick: Got Iranians to allow passage
for the French container ship, paid the toll and more importantly made Euro the
transaction currency for oil & gas trade. Friedrich Merz is on the other
hand is seen slipping towards the lowest ever approval rate for a chancellor in
German history.
Macron often called as Le petit roi, had the
gumption to negotiate with Iran over the Hormuz issue, breaking rank with the
other EU pundits. On 3- 4- 2026, Iran allowed the Malta-flagged, French-owned
container ship Kribi operated by CMA CGM to pass through the Strait of Hormuz, making
it the first Western European vessel to do so in the closed gateway resulting from
the US & Israel- Iran war. Effectively, the terms are France would not allow the using
of French soil or airways against Iran; monetary transactions would be
in Euro and the requisite toll would be paid.
This is indeed epochal. Firstly, the freedom of navigation claimed by the
US led west has been rubbished and acknowledged so. Secondly, by paying
in Euro the sanctions imposed upon Iran regarding foreign currency transactions
are declared null and void. Thirdly, this results in a tectonic shift in
geoeconomics where China and EU could work shoulder to shoulder in de-dollarization.
Iran is reported
to enforce three conditions for passage thru Hormuz:
one relates that the vessel belongs to a friendly nation. Understandably, America,
Israel and the Gulf countries are deemed so far unfriendly. By the same token,
the goods purported to be carried inside a vessel should have been transacted
either via Yuan or an acceptable currency for the Iranian authorities. A flat
toll is charged at approximately at US$ 2 million in value. The last would be reviewed
as the case may be in the future.
Friedrich Merz
must capitalize on this French breakthrough. Already he is in dire straits.
A recent survey indicates a record high dissatisfaction rate amongst the
German populace about the current the CDU/CSU & SPD Coalition and especially
about the stewardship of Chancellor Friedrich Merz. In fact, his dissatisfaction
ratio is perched at 85% the absolute low for any German Chancellor so far.
A lack lustre Merz
continues to pontificate as regards to the progress of war
making passive statement such as “I wish every day that the Iran war would end”.
He must listen to people like Larry Fink of Black Rock, the world’s largest
asset manager, who said in no uncertain terms that either Iran is accepted back
into the international community or the Strait of Hormuz remains inaccessible.
Friedrich Merz must immediately approve that Euro be one of the
two transaction currency along with Yuan and the EU removes all financial sanctions
over Iran. Failing to do so would give the American a big advantage.
They can quietly keep US Dollar as transaction currency for oil & gas along
with Yuan but effectively unseating Euro from the reserve currency status.
Navigating strategy amid geoeconomics mandates
that Friedrich Merz save both Germany and Euro in a single stroke by following
French President Macron!
Cheers!
Muthu Ashraff Rajulu
Strategy Adviser
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Strategy Adviser
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