Tuesday, 8 May 2012

The Latest from Iran (8 May): The Political Fight Over Subsidy Cuts

0525 GMT: Life in the Capital. Staff of The New York Times speak to some young adults in Tehran about the state of their lives --- a snapshot:

“Every topic me and my friends discuss, whether it’s the latest movie, a trip or our future, ends up with politics,” said Samaneh, 27, who lives with her parents and did not want her family name used out of fear of retribution. “Here our lives are decided by those in power. Our options are more and more limited.”

She emphasized that the issues her generation faced went well beyond the nuclear issue. Iran is grappling with corruption and inflation, and youth unemployment is over 20 percent, according to official figures, but experts say it is probably much higher. Divorce, drug abuse and inequality have risen steadily in the last decade.

“I really don’t see any of these issues being resolved,” Samaneh said, “but at least less foreign pressure, like an end to sanctions, would ease our burden a bit.”

0518 GMT: Political Prisoner Watch. Imprisoned blogger Mohammad Reza Pourshajari has been given an additional year behind bars and will now serve a four-year sentence.

0515 GMT: All the President's Men. Leading critic Ahmad Tavakoli has indicated the fight against Presidential aide Saeed Mortazavi will continue, claiming the Administration Court will pursue Mortazavi's "illegal" appointment to head the Social Security Fund.

Tavakoli has also said that Parliament may persist in the effort to impeach Minister of Labor Abdolreza Sheikholeslami this week.

0505 GMT: Oil Watch. The Financial Times reports that Iran is accepting Chinese renminbi for some of the crude oil it supplies to Beijing, amid US sanctions.

Tehran is spending the currency, which is not freely convertible, on goods and services imported from China, its largest oil customer.

Some trade is also in barter. For example, the trading company Zhuhai Zhenrong pays with services such as drilling.

0455 GMT: Analysts contend that the Government's subsidy cuts, launched in December 2010, have significantly contributed to inflation and currency difficulties. Now the second phase, promised by President Ahmadinejad and his allies, is generating political as well as economic conflict.

The highest-profile charge has come from Speaker of Parliament Ali Larijani, who alleged last Friday that the Government would raise gasoline prices up to three times to cover the costs of the second phase, but he has plenty of charge, including his Parliamentary ally Ahmad Tavakoli. 

VOA Persian summarises the latest manoeuvres, with claims that the second phase has been cut in half, and MPs persisting in the call for the Government to "rethink" its approach.


from EA WorldView: EA Iran

Posted via email from lissping

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