Germany and Iran in tit-for-tat spat over Islamic center closure

Some German lawmakers are calling for fresh sanctions against Iran as the clock ticks down for the former head of the Islamic Center Hamburg Mohammad Hadi Mofatteh to leave the country by Wednesday.

Mofatteh was expelled by Germany in late August on allegations that the center (IZH) was “spreading the ideology of the Islamic Revolution in an aggressive and combative manner and pursuing unconstitutional goals.”

This comes at a time when new Iranian President Masoud Pezeshkian is making efforts toward the lifting of international sanctions on Iran in hopes of improving the economy.

Peter Heidt, a caucus member of the pro-business Free Democratic Party (FDP), a partner in Germany’s coalition government, is one of the politicians calling for stronger action against Iran. He told Nikkei Asia on Monday that the bilateral relationship has hit rock-bottom.

“With the Iranian regime exporting terror to Syria, Lebanon and the Houthis and disseminating hate speech in the IZH, I cannot imagine that there will be any improvement in dealing with it, and we as the FDP are behind closed doors pushing policymakers both in Berlin and Brussels for tighter sanctions,” Heidt said.

Germany’s intelligence agency said Mofatteh, who headed the IZH for six years, was considered until recently the deputy of Iran’s spiritual leader, Ayatollah Ali Khamenei, in Germany. Mofatteh is not allowed to re-enter Germany or he faces up to three years in prison. It is unclear if he has left Hamburg as he could not be reached for comment.

The IZH, also known as the Blue Mosque, was deemed unconstitutional and closed by the German authorities on July 24, following investigations into its ties with Iran and Hezbollah, a Lebanese paramilitary group. IZH’s assets and facilities were confiscated and five sub-organizations assigned to it were banned.

In apparent retaliation, Iranian authorities on Aug. 20 closed a German state-linked language school in Tehran.

The European Union has long imposed trade sanctions on Iran. In July 2023, restrictions were tightened because of Tehran’s support for Russia’s invasion of Ukraine. German exports to Iran fell 24% to 1.2 billion euros ($1.3 billion) in 2023 from a year ago, according to the Federal Statistical Office.

The EU has also been eyeing additional sanctions over Iran’s role in the war between Hamas and Israel. In April, the EU enacted a round of restrictions after Iran attacked Israel, which was sparked by Israel’s bombing of the Iranian Embassy in Damascus.

An observer said, though, that both sides show little appetite for escalation.

“By closing an Islamic center and a language school, rather than expelling diplomats or closing embassies, both sides kept diplomatic channels open,” said Carsten Wieland, a commentator and former diplomat specializing in Middle East affairs.

“The German and European sides want to hold on to diplomatic options to prevent Iran from crossing the threshold [into] becoming a nuclear state,” he said, referring to the nuclear accord agreed in 2015 between Iran and the five permanent members of the U.N. Security Council — China, France, Russia, the U.K., the U.S. plus Germany under the EU.

Under U.S. President Donald Trump in 2018, Washington withdrew from the pact, with the former leader pledging he would negotiate a better deal, which he failed to do before leaving office.

Recent Iranian news reports indicate that the nuclear accord’s survival is in the interest of the reformist administration of President Pezeshkian. They pointed out that Pezeshkian appointed Mohammad Javad Zarif, who was chief diplomat during the two years of talks that led to the nuclear deal, as vice president for strategic affairs. He also appointed Abbas Araghchi, who was Zarif’s deputy during the nuclear negations, as the new foreign minister.

“As the Iranian population questions why their government has been sending so much money to the wars in Lebanon and Syria while they have to line up for fuel and other necessities, the existing sanctions exert great domestic pressure onto the Iranian regime to improve international ties,” Wieland said.