Iran Lawmakers Reject Rouhani Answers on Economic Woes

Iran's parliament voted its dissatisfaction with President Hassan Rouhani on Tuesday after grilling him over the deteriorating economy. 

It was the first time Rouhani had been summoned by parliament in his five years in power, and MPs demanded answers on unemployment, rising prices and the sharp depreciation of the rial, which has lost more than half of its value since April.

The lawmakers, who have already impeached his labour and economy ministers this month, were unimpressed. 

In votes at the end of the session, they expressed dissatisfaction with Rouhani's responses to four of their five questions on the economy. 

Rouhani trod a difficult line, seeking to acknowledge the problems facing ordinary Iranians without admitting to a full-blown crisis.  

"It should not be said we are facing a crisis. There is no crisis. If we say there is, it will become a problem for society and then a threat," he told parliament. 

Under parliamentary rules, the issues on which lawmakers expressed dissatisfaction will now be referred to the judiciary for review. 

As usual, Rouhani offered no concrete policy proposals, instead saying repeatedly that the answer lay in showing the people that the establishment was united. 

"You may talk about employment, foreign currency, recession, smuggling... I think the problem is in people's view of the future," he said. 

"The people are not afraid of the United States, they are afraid of our disagreements. If the people see we are united, they will realize the problems will be resolved."

But Rouhani's government—which pushed a "moderate" line of improved relations with the West—has been badly weakened by Washington's May decision to withdraw from a landmark 2015 nuclear deal between Iran and major powers and reimpose sanctions. 

Most foreign firms have abandoned investment projects in Iran, and the next phase of renewed US sanctions in November will hit the crucial oil sector. 

'Palace of wishes'

Rouhani sought to shift the blame to the administration of US President Donald Trump, saying: "We will not allow a bunch of anti-Iranians who have gathered in the White House to conspire against us."

But most Iranians blame their own government for failing to capitalize on the nuclear deal while it had the chance, and for raising people's expectations without delivering results. 

"You created a palace of wishes called the JCPOA," said Mojtaba Zolnour, an MP for the shrine city of Qom, using the technical name for the nuclear deal.

"With one kick from Trump, this palace was demolished, and you didn't have an alternative," he said.

Despite the impeachment of two of his ministers, Rouhani himself is protected by supreme leader Ayatollah Ali Khamenei, who said recently that removing the president would "play into the hands of the enemy."

That may explain the soft line taken by several speakers, with one conservative MP, Hossein Naghavi-Hosseini, emphasising: "We will stand by your government for the sake of protecting the system of the Islamic republic."

But when it came to the votes, lawmakers accepted only one of Rouhani's answers—related to international banking sanctions, which they agreed were beyond his government's control.

Even after the nuclear deal, major foreign banks continued to refuse to work with Iran, fearing the lack of transparency in its financial sector could lead them into legal trouble. 

Rouhani has even lost support among reformists who had supported him as the best option after their own leaders were either locked up or barred from standing for office. 

"What have we done with this nation? We made them miserable and wretched," said leading reformist MP Elias Hazrati as he voted in favour of impeaching economy minister Masoud Karbasian on Sunday.

Photo Credit: IRNA

Rouhani's Woes Mount as Iran Economy Minister Impeached

Iran's parliament impeached Economy Minister Masoud Karbasian on Sunday in the latest blow to embattled President Hassan Rouhani as he struggles to face down a mounting economic crisis.

Karbasian is the second cabinet minister to be sacked this month, following the impeachment of Labour Minister Ali Rabiei on August 8.

Critics say the government squandered the opportunities presented by the 2015 nuclear deal and have failed to tackle high rates of inflation and joblessness.

With the United States abandoning the nuclear deal in May and reimposing sanctions, Rouhani's hopes of attracting vast sums of foreign investment appear dead in the water. 

Major European firms, including France's Total, Peugeot and Renault, and Germany's Siemens and Daimler, have all announced their departure since the US announcement.

Rouhani's conservative opponents—who long-opposed his outreach to the West and efforts to improve civil liberties—say the primary blame lies with government corruption and mismanagement. 

"Inefficiency and lack of planning have nothing to do with sanctions," said one lawmaker, Abbas Payizadeh, in a speech ahead of the vote.

"Wrong decisions have harmed the people and led to individuals looting public assets," he added.

Rouhani, a political moderate, can still count on the support of a sizable reformist bloc in parliament, but even some of its key figures have grown disillusioned. 

"What have we done with this nation? We made them miserable and wretched," said Elias Hazrati, of the reformist Hope faction in parliament.

"The middle class are moving towards poverty," added Hazrati, who broke ranks to vote in favor of the impeachment. 

Karbasian lost the vote of confidence, which was carried live on state radio, by 137 votes to 121, with two abstentions.

The outcome sees him stripped of his post with immediate effect, leaving Rouhani to pick a replacement.

'We are not prepared'

Hazrati said the government had failed to plan for the real pain of sanctions, which will hit when a second phase of US measures is reintroduced in November targeting Iran's crucial oil sector.  

"We haven't been prepared and we are not prepared now," said Hazrati.

"The only person we could get our hands on was the economy minister. Otherwise, the president should have been impeached," he added.

For now, Rouhani remains protected by supreme leader Ayatollah Ali Khamenei, who said this month that removing the president would "play into the hands of the enemy".

But parliament has summoned the president for the first time to answer questions on the crisis, and he is expected to appear on Tuesday. 

One of the key markers of Iran's economic crisis has been the collapse in the currency, which has lost around half its value since April. 

That was partly owing to US hostility, but also due to a disastrous decision to fix the value of the rial and shut down currency traders. The move triggered a boom in the black market and widespread corruption, before the decision was finally reversed this month. 

Business people in Iran point to other deep-rooted problems, from the debt-ridden banking sector to the outsized and opaque role of military-linked organizations in the economy. 

Rouhani has taken small steps to resolve these issues, but most Iranians are dissatisfied with his progress. 

There have been persistent, low-level strikes and demonstrations across the country for months over high prices and unpaid wages that have occasionally turned into violent protests against the system as a whole.

Figures released by the central bank on Saturday showed huge jumps in the cost of essential goods compared with a year ago. 

Dairy products are up by a third, chicken by more than 20 percent and fresh fruit by 71 percent. 

Photo Credit: IRNA