Germany's BDI praises EU's new finance mechanism but cautions against risks

The creation of a new finance mechanism for European trade for non-dollar trade with Iran underscores Europe's reliability in global trade, but substantial risks remain, Germany's BDI industry group told Reuters on Thursday. France, Germany and Britain have set up the mechanism in an effort to circumvent U.S. sanctions on Iran, though diplomats say it is unlikely to yield the big commercial transactions that Tehran says it needs to keep a 2015 nuclear deal afloat.

"Central questions ... are still open," said Stefan Mair, member of the BDI leadership team. "The clearing office is still reliant on sanctioned Iranian oil and gas business so that substantial risks remain for longer-term trade relations."