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Economic implications for Europe of a potential reintegration of Iran into the world economy: /
Report

Economic implications for Europe of a potential reintegration of Iran into the world economy: /

Mahdi Ghodsi, Gabriel Felbermayr, Heider Kariem, Robert Stehrer, Yoto V Yotov and Wiener Institut für Internationale Wirtschaftsvergleiche
Think Tank Review (TTR), v 139/2026
2026

Abstract

economic sanction energy market EU relations Iran liberalisation of trade
How would fundamental political change in Iran, leading to a democratic system with a free and rules based economic order, affect Germany and the EU economically? In the event of change, sanctions could be scaled back, allowing Iran to rejoin the global economy. This study quantifies the economic effects of such a transformation. It neither advocates for nor legitimises the lifting or easing of sanctions under the current regime or without far-reaching and credible reforms that fully address the concerns underlying the sanctions currently in place.

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